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Supply and Demand Effects on Shipping Costs with AirJIT

How market dynamics influence the cost of shipping your parcel.

In this article:​

  • Understanding Supply and Demand in Shipping
  • How Supply and Demand Impact Costs
  • Strategies to Optimize Shipping Costs
  • Monitoring Price Fluctuations

Understanding Supply and Demand in Shipping​

Shipping costs on AirJIT are influenced by the basic economic principles of supply and demand. When demand for shipping services increases or the supply of available travelers decreases, the cost of shipping your parcel can rise. Conversely, during periods of low demand or when there is an abundance of travelers, shipping costs may decrease.

How Supply and Demand Impact Costs​

  • High Demand and Low Supply: During peak travel seasons or on popular routes, there may be fewer travelers available to carry parcels. This scarcity drives up the price of shipping as more shippers compete for limited space.

    • Example: During the holiday season, shipping a parcel from New York to London may be more expensive due to high demand for travel on this route.

  • Low Demand and High Supply: On less popular routes or during off-peak travel periods, there may be more travelers than parcels to carry. In these situations, shipping costs may decrease as travelers compete to secure parcels to carry, leading to lower prices.

    • Example: Shipping a parcel from a less frequently traveled route, such as from a small regional airport, might be less expensive due to lower demand.

  • Dynamic Pricing: AirJIT's pricing model adjusts in real-time based on the current market conditions. This means that shipping costs can fluctuate depending on how many travelers are available and how many parcels need to be shipped at any given time.

    • Example: Prices may increase if a sudden surge in demand occurs, such as when a new product is released and many shippers are trying to send it internationally.

Strategies to Optimize Shipping Costs​

  • Plan Ahead: If possible, plan your shipments during off-peak times when there is less competition for travel space. Avoid peak travel periods, such as holidays or large events, when demand is likely to be higher.

  • Flexible Shipping Dates: Being flexible with your shipping dates can help you take advantage of lower prices. If your shipment isn't urgent, consider shipping during times when demand is lower.

  • Monitor Pricing Trends: Keep an eye on pricing trends within the AirJIT platform. If you notice prices rising, it might be worth booking your shipment sooner rather than later. Conversely, if prices are dropping, you could wait to book.

  • Consider Alternative Routes: If shipping to your destination is expensive, consider using alternative routes or nearby airports to reduce costs. Shipping to a less popular airport may be cheaper, even if it requires additional ground transport.

Monitoring Price Fluctuations​

To monitor price fluctuations and manage your shipping costs:

  1. Log In: Access your AirJIT account.

  2. Navigate to Parcels: Go to the "Parcels" tab.

  3. Review Listings: Check your parcel listings to see how pricing may have changed since you first listed the shipment.

  4. Set Alerts: Use AirJIT's pricing alerts to notify you when shipping costs drop to a level you're comfortable with.

By understanding and leveraging the principles of supply and demand, you can better manage your shipping costs on AirJIT, ensuring you get the best value for your parcel shipments.