Rising demand on air freight
Businesses that are transporting goods by Air Freight are facing several major challenges due to low levels of available cargo capacity and increasing air freight rates. International demand for air cargo during a time of reduced aircraft and air cargo capacity has seen global air freight rates increase average global air cargo rates by 112%. Since August 2021, volumes were up by 1% compared to +19% in August 2020, however cargo capacity has seen a fall of -16% in contrast to August 2019.
Rising demand is also being driven by the number of retailers having to pivot from traditional ocean freight-based supply chains to air cargo to replenish stock levels in time for their peak sales season.
As a result:
•Earlier than usual Air Freight Peak Season
•Freight rates are pushed to record levels
•Traditional ocean cargo switching to Air Freight, due to high container rates and congestion
•COVID-19 related congestion and backlogs throughout China and Vietnam main airports
•Air Cargo volumes increased by 20% compared to August 2019
•Air Cargo capacity reduced by 16% compared to August 2019