Airfreight generally increases both transporting cost and the total cost of distribution because it tends to add to inventory costs, spoilage, theft, and damage.

Question

Quizplus · Accepted Answer

Airfreight generally decreases inventory costs because it allows for faster transportation, reducing the need for holding large amounts of stock and associated costs like storage, insurance, and capital tied up in inventory. It does not inherently increase spoilage, theft, or damage; in fact, faster transit times can reduce the risk of spoilage for perishable goods.

Airfreight Generally Increases Both Transporting Cost and the Total Cost