HIGH ocean freight rates has caused service disruption and has induced forwarders and shippers to use air freight, according to the International Air Transport Association (IATA), reports London's Air Cargo News.
In its latest market summary, IATA said that air cargo is benefitting from 'exceptionally congested' container shipping supply chains.
It pointed out that the cost-competitiveness of air cargo relative to that of container shipping has improved over recent months, with the average cost of air cargo in May six times more expensive than seafreight, compared with 12 times more expensive pre-crisis.
Said IATA director general Willie Walsh: 'Improved competitiveness compared to sea shipping should continue to make air cargo a bright spot for airlines while passenger demand struggles with continued border closures and travel restrictions.'
Market data provider Freightos said that air cargo rates from the Asia to the US had started climbing - ocean rates are one potential reason for the increase.
Freightos research lead Judah Levine said: 'One culprit [for the ocean rate increases] may be an increase in ocean to air conversions driven by climbing rates and persistent delays in ocean freight.
'Some retailers seem to be making the choice to move ocean imports to air despite the expense and possible financial loss, as a way to guarantee inventory and build customer loyalty while their competitors may be sold out due to logistics delays.'
SeaNews Turkey
In its latest market summary, IATA said that air cargo is benefitting from 'exceptionally congested' container shipping supply chains.
It pointed out that the cost-competitiveness of air cargo relative to that of container shipping has improved over recent months, with the average cost of air cargo in May six times more expensive than seafreight, compared with 12 times more expensive pre-crisis.
Said IATA director general Willie Walsh: 'Improved competitiveness compared to sea shipping should continue to make air cargo a bright spot for airlines while passenger demand struggles with continued border closures and travel restrictions.'
Market data provider Freightos said that air cargo rates from the Asia to the US had started climbing - ocean rates are one potential reason for the increase.
Freightos research lead Judah Levine said: 'One culprit [for the ocean rate increases] may be an increase in ocean to air conversions driven by climbing rates and persistent delays in ocean freight.
'Some retailers seem to be making the choice to move ocean imports to air despite the expense and possible financial loss, as a way to guarantee inventory and build customer loyalty while their competitors may be sold out due to logistics delays.'
SeaNews Turkey
