News / Capacity constraints pushing forwarders toward block space air cargo agreements

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Capacity constraints have tilted the balance of power in favour of the airlines, with shippers no longer able to pick up and drop carriers on a whim.

Because of the heightened demand – largely caused by surging e-commerce volumes – forwarders in the perishables sector are having to decide between signing block-space agreements or risking losing space.

And any hopes of carriers increasing available capacity are very unlikely, said one forwarder, who told The Loadstar airlines would “choose to increase capacity at minimal levels to ...