Such networks can move parcels by air quickly and at more moderate prices, says Jeffrey Elder, head of product for Deliver Direct, a Delta Airlines service.
When we think of delivery, the work of the big integrators comes to mind, Elder says. However, technology enables airlines and trucking operators to work in that space as well.
Alternatives to working with integrators are growing. Much of that is due to booming e-commerce, at least in air transport. In fact, air cargo is influenced by e-commerce worldwide. “There is a lot of volume and a lot of need for capacity from that perspective.,” Elder says. “As you start to fill up these big integrators, you look for other opportunities. I think that’s allowed these alternative delivery networks to grow and feed some of that need for capacity and space.”
The need for speed in delivery aligns perfectly with what airlines already provide, Elder says. For instance, Delta’s network has 4,000 daily flights, with belly space on all domestic flights. “We’re trying to utilize that to increase speed and offer some really good deals from a pricing perspective since the flights are already going out.” Deliver Direct’s model isn’t zone-based, and there are no add-on accessorials, Elder says.
Since a large amount of the e-commerce moved by alternative networks is imported, tariffs are of some concern, especially as they are a major component of the Trump Administration’s foreign policy. Elder acknowledges that operators are concerned with tariffs, but he’s confident they’ll come up with a solution. That may mean finding other places to move their product, pushing product closer to the consumer or finding ways to cut costs on delivery. “I think all of us will continue to watch,” he says, “and see how we can maneuver through and make good bets for our customers.”
