News / Surging ocean waves sending ripples into airfreight

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Forwarders are reporting that the surge in Asia-to-Europe ocean freight is also impacting airfreight.

One ocean-focused forwarder based in Singapore told The Loadstar: “It’s having a spill-over effect into airfreight ex-Asia to Europe – and even to North and South America.

“Especially for Asia to Europe, due to the uncertainty and delays with ocean shipments, we have seen quite a few customers converting to airfreight – to the point that even sea forwarders are enjoying an upswing in airfreight business.”

He added that airlines were starting to withdraw long-term winter and summer schedule rates: “Airlines are now offering rates on a monthly basis for Asia to Europe and Asia to Americas,” he said.

Disruption has also boosted sea-air transhipments via the Middle East and Indian sub-continent.

WorldACD said yesterday tonnages and rates from the Middle East to Europe were “highly elevated”, with tonnages up 40% year on year, boosted by sea-air traffic.

While it added that the market ex-India had calmed somewhat, pricing – up 164% year on year – remained “exceptionally high”. Rates from Dubai and Colombo meanwhile were up 44% and 51% respectively, year on year.

“Strong demand and the disruptions to container shipping in the region caused by the attacks on ships in the Red Sea continue to stimulate very strong air cargo demand from the MESA region,” it explained.

With ecommerce ex-Asia still “the key factor driving air freight”, according to a Shanghai-based forwarder, the problem is backhaul.

One US executive at a transpacific-focused carrier said: “There is ample airfreight capacity to cater for the current export demand for Asia. Freighters are full inbound with ecommerce business, but exports are not growing at a rate that matches that demand. “

The executive added, however, that: “Special products, cold chain and perishables are the bright spot. I hear we should have a strong cherry season this year too.”

Perishables were likely in mind for the northbound routes when Maersk announced yesterday it was expanding its airfreight operations in Miami with a “full-service, in-transit gateway solution”.

Modelled on its operations in Atlanta, Chicago and Los Angeles, the Miami operation will focus on transhipment cargo from Europe and Asia, via Miami, into Latin America.

Maersk said the 90,000 sq ft facility – staffed by Maersk forwarders – would “support the North American export market to Latin America and the Asian market that serves the Latin American supply chain via cost-competitive US routes”. The facility includes a US Customs-bonded container freight station and a certified cargo screening facility.

However, one senior forwarder covering the Americas, said: “Latin America is a bit of a frenetic poor cousin. There are a lot of ebbs and flows, and certainly when you talk about US election impacts on the trade, Latin America has it much worse. Any changes in administrations for countries there really have an impact, and you just never know which way it’s going to go.

“It is quite frenetic, to be honest, both on southbound volumes as well as northbound.”

No doubt Maersk will shortly begin to enjoy this frenetic activity.