Recently, air cargo industry in Korea has been retarded due to reduced demand, and this trend is expected to continue for the time being. However, air express market is showing different aspects. The past air express handled only documents, samples, personal items, but now due to e-commerce items, it’s widening its range of handling shipments and has been strengthening its competitiveness. In this respect, the aim of the research is to analyze the competitiveness of international air express service compared to traditional air cargo service by forwarder in terms of cost, service, time and others.

Research has been done as follows. As the root of air courier, the air cargo market and industry was reviewed, and found the change in the surroundings of air cargo industry, like the change of international logistics’ environment, the upgrade of Supply Chain Management, the upsweep of e-commerce, the rising fuel price, and so on. Then the literature was reviewed on the theory of mode selection, air cargo and air express service. As the result, the competitiveness of air express service against the traditional air cargo service was detected.

To prove the competitiveness of air express, three types of data were driven from multiple sources. First one is from Customs Office’s website, second and third ones are forwarders, air couriers and shippers.
Several statistical methodologies are applied to analyze data and find any correlations between variables. Variables are categorized by 4 main factors as like cost, time, service and others. The methodologies applied are T-test, ANOVA(Analysis of Variance), Logit model analysis, ANCOVA (Analysis of Covariance), and Repeated measure ANOVA.

In the process of analysis of the difference and competitiveness between air express service and traditional as well as between big 4 express couriers(DHL, Fedex, UPS, TNT) and other couriers, some valuable information are caught. In terms of time, air express and traditional air cargo is completely different service and air express are better, further big 4 companies are better than other couriers. In terms of cost, low weight cargo is the better area for air express couriers, further big 4 couriers are better for industrial customers, and other couriers are better for individual customers. In terms of service, air couriers are much better than forwarders in the area of oversea network and tracing system, last in terms of others, sample is good for big 4 couriers, and international on-line shopping items are good form other couriers.

Managerial implications are as follows. For shippers, air express service should be positively reviewed as an alternative to traditional air freight, because air express is much better than traditional service, and cost advantage is set in low weight cargo and increasing the extent of the advantage area. But it should be aware of the difference between big 4 couriers and other couriers.
For forwarders, they should pay attention to the territorial extension of air couriers into the market segment of over 45 kilograms shipment. To do that, their rate structure should be more flexible getting rid of fixed rate, and provide one stop service with customers.
For couriers, other couriers are too dependent on e-commerce personal shipment, they should attract industrial customers by better cooperation with air carriers to save hours, and extend their overseas networks.