USA fleet of 350s or Boeing 777s . Then we leverage based on that and spend 80 % of our funds with those carriers , and we meet with them every 90 days to put together dynamic pricing for people who want to play in the stock market .
“ For people who want to play longer , we put together block space agreements or soft block agreements to carriers saying you will deliver x number of kilos per week . It just depends what you ’ re looking for .”
The biggest challenge is , and always will be forecasting . Phelps explains that just like hotels can never predict how many rooms they will fill , the same applies to air freight . They might know what capacity there is , but there is no way of knowing if a truck will break down or a driver will get lost .
“ The market is very dynamic at the moment ,” he says . “ 2018 will continue to be a space vs . rate scenario - I see continued pressure on the market for increased rates , I see that our larger competitors and larger contracts with customers are going to continue to see yield problems and , as long as the fuel stays where it ’ s at , the airlines are going to continue to increase their pricing by 15 % next year .
“ It ’ s up to us as procurement
Rich Bolte at Ernst & Young Awards businessreviewusa . com 79