AIR cargo shippers have been told they should delay their 2025 tenders until after what is expected to be a tumultuous peak season, reports London's Air Cargo News.
In a series of recommendations on how to manage current market conditions, Xeneta chief air freight officer Niall van de Wouw said companies should make sure terms and conditions (T&Cs) are firmed up, avoid air hubs sensitive to the e-commerce boom, take advantage of the lack of backhaul demand, utilize data and delay tenders to avoid the upcoming peak season.
'Current market sentiment influences both sides of the negotiating table and vendors will understandably use the peak season turmoil to paint a gloomier picture for 2025,' he said.
'Both shippers and vendors discussing the market in 2025 are going to be influenced by what is happening around them in the here and now.
'As long as you have your terms and conditions agreement (T&Cs) in place, you can bide your time and wait out the storm. The market may look very different in early 2025 and you will be much better placed to enter negotiations with clarity and decisiveness.'
On T&Cs, Mr Van de Wouw said that if these are agreed and in place it will avoid 'moving goalposts' and allow both sides to work in partnership to navigate the expected peak season storm.
He added that ignoring the threat of e-commerce is one of the biggest mistakes shippers can make.
'Where possible avoid the air freight hubs most sensitive to any e-commerce boom,' he said. 'For example, when flying cargo between Southeast Asia and North America, try to avoid the Hong Kong and South China airfreight hubs.'
However, he added that the e-commerce boom also represented an opportunity, explaining the situation has worsened the imbalance between head- and backhaul.
Shippers with backhaul volumes could use this to their advantage in negotiations to secure better access to capacity and rates on the fronthaul market.
'Do not underestimate your hand at the negotiating table - in many respects, the volumes you can offer a vendor on a backhaul is even more valuable than the fronthaul because it is harder to come by and vital to achieving overall profitability,' he said.
Overall, Xeneta painted a gloomy picture for the peak season.
SeaNews Turkey
In a series of recommendations on how to manage current market conditions, Xeneta chief air freight officer Niall van de Wouw said companies should make sure terms and conditions (T&Cs) are firmed up, avoid air hubs sensitive to the e-commerce boom, take advantage of the lack of backhaul demand, utilize data and delay tenders to avoid the upcoming peak season.
'Current market sentiment influences both sides of the negotiating table and vendors will understandably use the peak season turmoil to paint a gloomier picture for 2025,' he said.
'Both shippers and vendors discussing the market in 2025 are going to be influenced by what is happening around them in the here and now.
'As long as you have your terms and conditions agreement (T&Cs) in place, you can bide your time and wait out the storm. The market may look very different in early 2025 and you will be much better placed to enter negotiations with clarity and decisiveness.'
On T&Cs, Mr Van de Wouw said that if these are agreed and in place it will avoid 'moving goalposts' and allow both sides to work in partnership to navigate the expected peak season storm.
He added that ignoring the threat of e-commerce is one of the biggest mistakes shippers can make.
'Where possible avoid the air freight hubs most sensitive to any e-commerce boom,' he said. 'For example, when flying cargo between Southeast Asia and North America, try to avoid the Hong Kong and South China airfreight hubs.'
However, he added that the e-commerce boom also represented an opportunity, explaining the situation has worsened the imbalance between head- and backhaul.
Shippers with backhaul volumes could use this to their advantage in negotiations to secure better access to capacity and rates on the fronthaul market.
'Do not underestimate your hand at the negotiating table - in many respects, the volumes you can offer a vendor on a backhaul is even more valuable than the fronthaul because it is harder to come by and vital to achieving overall profitability,' he said.
Overall, Xeneta painted a gloomy picture for the peak season.
SeaNews Turkey
