AIRFREIGHT rates have remained elevated on trans-Atlantic routes, with Trans-Atlantic westbound airfreight volume increasing 25 per cent in March year over year, reports IHS Media.
The increase comes amid worsening port bottlenecks on the us East Coast that are forcing greater numbers of North American ocean importers into the air.
Xeneta chief airfreight officer Niall van de Wouw declared in a market update that the logistical difficulties on the water between the EU and North America were putting 'wind into the sails of the air cargo market.'
'With continuously declining schedule reliability of the ocean liners, logistical departments will likely be required to resort to air freight because of disruptions to their supply chains caused by these record-low service levels.'
Ports on the US East Coast have been battling waves of congestion for the past year.
Overwhelmed terminals led to backlogs outside the ports of Charleston, Savannah, New York and New Jersey, and Virginia.
The improving US manufacturing landscape and sustained consumer demand are keeping ships out of Europe full, while shippers divert Asia-US cargo from the US West Coast Ports to the East Coast.
However, the incoming volume is overwhelming terminals.
There is record-low schedule reliability and delays over ten days off East Coast ports.
A Kuehne + Nagel representative declared there was a correlation between the shift to air and the sea freight market.
'This has forced a number of shippers with very defined lead times to shift their goods from sea freight to air freight,' said the representative.
'This leads to growth in temperature-controlled shipments as well as growth in industries that might not normally ship by air, such as the automotive companies.'
SeaNews Turkey
The increase comes amid worsening port bottlenecks on the us East Coast that are forcing greater numbers of North American ocean importers into the air.
Xeneta chief airfreight officer Niall van de Wouw declared in a market update that the logistical difficulties on the water between the EU and North America were putting 'wind into the sails of the air cargo market.'
'With continuously declining schedule reliability of the ocean liners, logistical departments will likely be required to resort to air freight because of disruptions to their supply chains caused by these record-low service levels.'
Ports on the US East Coast have been battling waves of congestion for the past year.
Overwhelmed terminals led to backlogs outside the ports of Charleston, Savannah, New York and New Jersey, and Virginia.
The improving US manufacturing landscape and sustained consumer demand are keeping ships out of Europe full, while shippers divert Asia-US cargo from the US West Coast Ports to the East Coast.
However, the incoming volume is overwhelming terminals.
There is record-low schedule reliability and delays over ten days off East Coast ports.
A Kuehne + Nagel representative declared there was a correlation between the shift to air and the sea freight market.
'This has forced a number of shippers with very defined lead times to shift their goods from sea freight to air freight,' said the representative.
'This leads to growth in temperature-controlled shipments as well as growth in industries that might not normally ship by air, such as the automotive companies.'
SeaNews Turkey
