Air Cargo Procurement: Spot Charters vs. Block Space Agreements (BSA)

Sarah M.

Head of Global Airfreight Procurement

Air Cargo Procurement: Spot Charters vs. Block Space Agreements (BSA)

Executive Summary

Key Takeaways

Block Space Agreements (BSAs) guarantee cargo volume allocations on scheduled flights but require minimum volume commitments.
Full and part-charter flights provide absolute schedule control and dedicated capacity for oversized, hazardous, or emergency freight.
A 70/30 allocation ratio (70% BSA baseline, 30% flexible spot) offers optimal protection against air rate spikes during peak Q4 cycles.
Volumetric chargeable weight optimization using high-density cargo nesting cuts airfreight expenses by up to 22%.

The Volatile Dynamics of Global Airfreight Capacity

Air cargo capacity is split between passenger aircraft belly holds and dedicated wide-body freighters. When passenger flight schedules shift seasonally, airfreight spot capacity contracts rapidly.

When to Deploy Dedicated Air Charters

For major product launches, automotive assembly line stoppages, or oversized turbine transport, dedicated aircraft chartering provides unrivaled velocity and schedule control.

Tags:#Air Freight #Charter Flights #BSA Agreements #Air Cargo Procurement #Capacity Planning

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