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Procurement Market Intelligence Report

Domestic Air Cargo Transportation Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Domestic Air Cargo Transportation Services?

What is the average price of Domestic Air Cargo Transportation Services?

This procurement report includes pricing information to help you purchase Domestic Air Cargo Transportation Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Domestic Air Cargo Transportation Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Domestic Air Cargo Transportation Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Domestic Air Cargo Transportation Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Domestic Air Cargo Transportation Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase Domestic Air Cargo Transportation Services?

ProcurementIQ estimates that about 180 carriers provide domestic air cargo transportation in the United States in 2018. Most of these carriers have little market share, and many operate regionally. The number of carriers in this market has been declining slightly as a result of mergers and acquisitions. For example, in... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Routing

Will all of my shipments be routed directly?

If not, how is my cargo protected during stops or transfers?

How much physical handling will my cargo endure over the course of its journey?

Does your airline have a major presence at the airports you depart from and arrive at?

What is your record for timely deliveries between airports? What has caused delays in the past?

Operating Philosophy

What local, regional, national or international trade groups or programs do you participate in?

How often must you subcontract or charter carriers to meet high demand? Will I be given prior notice and a chance to give consent in the event my shipment is carried on a subcontracted carrier's plane?

How does your fleet compare to competition in terms of size, age and fuel efficiency? How do you expect your fleet to evolve over the next few years?

How do you screen prospective employees? What job-specific development programs do you offer employees?

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Key elements for every RFP

What should my Domestic Air Cargo Transportation Services RFP include?

Project Budget

Buyers should specify the maximum per-unit budget for air cargo transportation services.

Buyers should request a detailed breakdown of prices that they can expect to pay continually and on a one-time basis (e.g. software fees) or an infrequent basis (e.g. renetting fees).

Buyers should indicate their preferred payment schedule and method.

Selection Criteria

Buyers should give preference to vendors that are able to meet their budget requirements for each level of priority shipping.

Buyers should consider the provider’s experience and ability to handle the volume of cargo necessary.

Buyers should give preference to vendors that are able to fly over all of their required transportation routes.

Buyers should favor vendors that are willing or able to ensure their cargo’s priority if capacity becomes an issue.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should state the date by which proposals are due, as well as when award information will be available.

Buyers should indicate the schedule for answering vendor questions and whether or not negotiations will be required for vendors that meet the proposal requirements.

Buyers should indicate the date by which they expect services to begin.

Evaluate major factors to mitigate risk

How risky is the Domestic Air Cargo Transportation Services supply chain?

The supply chain risk for domestic air cargo transportation is moderate, overall. Service continuity and price vary with the production levels and pricing of key upstream suppliers, which operate with a moderate degree of risk. Volatile fuel prices have been the primary cause of recent price shifts for domestic... Subscribe to learn more.

HIGH

MEDIUM

LOW