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However, air freight industry is an extremely susceptible to any minor economic changes. Any fluctuation in the global or the country’s economy can have a considerable effect on the air freight industry.
A country’s economy depends on gas prices and the gross income level of the people living in it. These factors influence the air freight industry in a considerable way. For example, if gas becomes expensive, then the shipping charges increase in response to it. The air freight companies usually do not have a fuel efficient airplane and so, the cost of shipping is never cheap. The non-availability of gas in some countries, and the expensive prices can make it impossible for an air freight company to be a profitable business.
In the shipping industry, the goods need to be transported on a regular basis. The trade industries cannot have any irregularities in the air freight services. So, the freight companies are forced to ship goods at their own cost. There are some countries in the world which do not fall under the same global agreements. So, the changes in oil prices do not affect them. The demand curve of the customers is another factor that affects the pricing and changes involved in the trade business. For example, if the demand rises, then it could be more difficult to ship at a high cost.
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