Strong ocean waves are creating impacts on airfreight
- May 17, 2024
- News
Freight forwarders are noticing that the surge in ocean freight from Asia to Europe is also affecting airfreight. One forwarder based in Singapore mentioned that the uncertainty and delays in ocean shipments have led to an increase in customers switching to airfreight. This trend is especially noticeable in the Asia to Europe route, with airlines starting to offer rates every month instead of long-term schedules.
Sea-air transshipments through the Middle East and Indian sub-continent have also increased due to disruptions in container shipping. WorldACD reported a significant increase in tonnages and rates from the Middle East to Europe, while rates from Dubai and Colombo have also risen sharply.
Despite strong demand for air cargo from Asia driven by e-commerce, there are challenges with backhaul capacity. Freighters are fully inbound with the e-commerce business, but exports are not growing at the same rate. However, there is optimism for special products like perishables, with expectations of a strong cherry season.
Maersk has expanded its airfreight operations in Miami to cater to transhipment cargo from Europe and Asia into Latin America. The facility includes a US Customs-bonded container freight station and a certified cargo screening facility.
Overall, the airfreight market is experiencing a mix of challenges and opportunities, with disruptions in ocean freight driving some cargo to air, particularly in the Asia to Europe route. Latin America remains a dynamic but challenging market for airfreight.