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 ?
ProcurementIQ estimates that about 182 carriers provide domestic air cargo transportation in the United States in 2021. The market for domestic air cargo transportation is highly concentrated with UPS, FedEx, Delta and American Airlines comprising over 50.0% of the market's revenue. However, most of the remaining carriers have little market... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
How do you determine your surcharge rates? Do you have the ability to make them more transparent than those of your competitors?
How does your security surcharge go toward improving the security of my shipment?
How often is your fuel surcharge revised? Have your rates fluctuated since the start of the COVID-19 pandemic?
Do you hedge your fuel purchases? How have your purchases changed amidst plummeting crude oil amidst the coronavirus outbreak?
Insurance & Liability
Will you negotiate a recovery rate that covers the average value per pound of my shipment (e.g. a contingent liability or increased value contract)?
Can I set the terms for what constitutes gross negligence?
What is your procedure for handling claims? Will I have the right to appoint my own representative to investigate a loss?
How will you restrict knowledge of my cargo's identity to only those that need to know?
Can my company or a third party audit your cargo handling procedures?
What is the extent of my point-of-contact person's authority at your company?
Will they respond to my inquiries directly and can they make immediate decisions regarding my cargo?
How quickly will I be contacted in the event of loss or damage to a shipment?
How can I receive real-time updates on my cargo's location and status?
Will all of my shipments be routed directly?
If not, how is my cargo protected during stops or transfers? Do you anticipate more stops and transfers amidst the pandemic?
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? Is your airline experiencing any disruption in its operations as a result of the coronavirus outbreak?
What is your record for timely deliveries between airports? What has caused delays in the past? Has the pandemic been affecting your ability to promptly deliver shipments?
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?
How do you screen prospective employees?
Do you perform random drug testing as a loss prevention and safety measure?
What developmental training opportunities are available for each type of employee that handles cargo or flies aircraft?
What is your discipline policy for employees involved in cargo loss or damage?
Is your workforce practicing the safety procedures outlined by the CDC to prevent the risks of transmitting the coronavirus?
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Key elements for every RFP
What should my RFP include?
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.
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.
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 supply chain?
The supply chain risk for domestic air cargo transportation is moderate, overall. Service continuity and prices vary with the production levels and pricing of key upstream suppliers, which operate with a mostly moderate degree of risk. A moderate level of supply chain risk hinders buyer power by exposing buyers to... Subscribe to learn more.