Further to recent reports of increased demand for air freight from Asia and generally around the Globe we have seen a continued increase this week in demand from China and the Asia Region.
There have been many launches of tech products by Apple, Samsung and Sony and most are running later than expected so air freight has become the prime mode of transport. In addition general business and products required by retailers and manufacturers due to depleted inventory have soared over recent weeks as we go deeper into the final quarter of the year.
The result has been carriers, both full freighter operators, Passenger freighter carriers and the still very limited passenger flight airlines have increased significantly with an average of a USD2 per kilo rise from China this week alone, in the last 72 hours.
The air freight market is also seeing demand further increased, as ocean freight shipments are transferred to air freight, to reduce transit times that have been extended by vessel delays, port blanking’s and the interruption of component and raw material supply chains to manufacturers.
In addition it has been announced today that Brazil will be taking a vaccine called ‘Coronavac’ from China and we anticipate this will have a profound impact on the air freight market from the region, especially if more nations begin to procure the vaccine in huge quantities.
We are also seeing a resurgence of PPE products in the air cargo market as the pandemic continues to increase its hold globally which are being ordered by national governments to stock up for the winter period.
Exacerbating the situation, air cargo capacity is still limited, with a ceiling created by grounded passenger fleets, which remain idle due to the lack of passenger demand.
The air freight market has probably not been this busy generally on a global basis in the last 30 years.
Metro have taken several measures to protect our clients during this period, including chartering of full and part aircraft, creating and using unique routings and reintroducing dedicated Birmingham airport hub.
We are also increasing capacity agreements with partner airlines, particularly from our sea/air hubs in Singapore and Dubai which remain very competitive, offering accelerated transits over ocean and rail freight.
It is absolutely imperative that you provide forecasts for your ocean freight and air freight as far ahead as possible, but at least over the next few weeks, so that we can block capacity and ensure we have the appropriate solutions in place to meet your transit expectations and deadlines.
For further information please contact Grant Liddell and Chris Carlile for latest news relating to the air freight market conditions.