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News / Forwarders and shippers caught in the updraught of an air cargo 'perfect storm'

air cargo ULDs © Prayuth Gerabun _91965821
© Prayuth Gerabun
By

Forwarders and shippers are “feeling the pain” of a serious lack of air freight capacity in the market as rates soar on some lanes as high as $8.00 per kg.

There is “nowhere to turn”, said one Asia-Europe air freight forwarder, who reported a seven-to-ten-day backlog out of Asia.

“Rates are going sky high – and going up every weekend. It’s about $4 per kg as an average, and airlines are getting choosy over the type of freight they are accepting,” he said.

“Lots of people ...

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  • Nick Coverdale

    November 09, 2017 at 2:49 pm

    if European importers can wait two weeks SEA AIR via Dubai ,we are taking bookings

  • mel perry

    November 11, 2017 at 1:54 am

    speculation, speculation, only idiots,
    didn’t see this coming

  • Charles

    November 16, 2017 at 6:04 pm

    This is an every year occurrence. Peak Season, November through the first two weeks in December. Granted since the total upswing of eCommerce, the space is a little more limited. But these larger eCommerce companies like Amazon, have planned for this and are chartering their own planes, on top of the cargo planes they already own and partner with.

    And some of these airlines also plan for this, they say space is limited, but in fact, they use this type of media hype to help them increase prices for space that has not been booked yet.

    PLANNING PEOPLE… its all about planning..

  • Richard Wang

    November 22, 2017 at 10:54 pm

    Its about time shippers pay the price as procurement & logistics are usually a targetted segment for companies to cut cost.

    Without knowing what it costs to move freight from point A to point B, managers demands freight forwarders to slash rates. It was vicious for carriers the last few years as many carriers succumbed to such demands, without realizing the long term effects. This is the reality of a free market, so, its time to recoup previous years losses.

    No qualms for shippers to pay high prices when they were demanding rates which were below costs.

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air cargo air cargo market air freight Capacity crunch: eastbound angst Peak season Rates: the eternal tango

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