AIRFREIGHT demand is rising as a result of the Red Sea conflict impact on Suez Canal shipping, according to Bollore Logistics, according to London's Air Cargo News.
The international transport and logistics company said that the 'volatile' situation, which has resulted in higher rates, increased transit times and supply chain delays, will squeeze airfreight capacity.
'The increased ocean transit times shall put pressure on inventories and have an immediate repercussion on airfreight capacities, with significant price hikes expected on major trades,' said the company.
Bollore added that it anticipates additional airfreight capacity between mid-January and early February ex-China.
The conflict also created an opportunity for increased air cargo charter business as shippers and forwarders looked to secure alternative transport for at-risk shipments.
A multinational defence force, Operation Prosperity Guardian (OPG) was set up last month to try and safeguard commercial shipping in the Red Sea.
Now, weeks on from the start of the conflict, shipping companies remain cautious about operations in the area.
Woodland Group warned of continued disruption, saying: 'Despite the recently formed multi-national coalition to increase security in the Red Sea, drone and missile attacks targeting commercial shipping continue to interrupt vessel movements on this busy route.
'The effect on global ocean freight management has been significant, with space becoming increasingly tight and rates increasing daily as we head into January.'
According to Bollore Logistics, the decision by major shipping lines to reroute a majority of containerships through the Cape of Good Hope 'represents more than 350 vessels and close to 5 million TEU over a two weeks' period'
SeaNews Turkey
The international transport and logistics company said that the 'volatile' situation, which has resulted in higher rates, increased transit times and supply chain delays, will squeeze airfreight capacity.
'The increased ocean transit times shall put pressure on inventories and have an immediate repercussion on airfreight capacities, with significant price hikes expected on major trades,' said the company.
Bollore added that it anticipates additional airfreight capacity between mid-January and early February ex-China.
The conflict also created an opportunity for increased air cargo charter business as shippers and forwarders looked to secure alternative transport for at-risk shipments.
A multinational defence force, Operation Prosperity Guardian (OPG) was set up last month to try and safeguard commercial shipping in the Red Sea.
Now, weeks on from the start of the conflict, shipping companies remain cautious about operations in the area.
Woodland Group warned of continued disruption, saying: 'Despite the recently formed multi-national coalition to increase security in the Red Sea, drone and missile attacks targeting commercial shipping continue to interrupt vessel movements on this busy route.
'The effect on global ocean freight management has been significant, with space becoming increasingly tight and rates increasing daily as we head into January.'
According to Bollore Logistics, the decision by major shipping lines to reroute a majority of containerships through the Cape of Good Hope 'represents more than 350 vessels and close to 5 million TEU over a two weeks' period'
SeaNews Turkey
