If you are currently importing goods, consider using air freight to hedge against the ongoing supply chain congestion, container shortages, and shipping delays plaguing ocean transportation.
As you know, ocean shipping prices have climbed significantly. According to Air Cargo News, the average cost per ocean container has increased between 300 and 500 percent since the beginning of 2020.
The seaport congestion will likely last into 2022, creating complicated follow-on issues for supply chains and the general economy. Now may be an opportune time to take another look at airfreight as an alternative for your company during these turbulent times in the global supply chain.
Air Charter Service (ACS) claims that aircraft charter providers may experience a historically busy peak season. Though charter prices are climbing –more than doubling on transpacific routes –they are starting to look good compared to current ocean rates and may be a viable choice when considering the potential fallout from ocean shipping delays.
Consider Airfreight Right Now to Avoid Disruption
The increase in air cargo demand corresponds to high ocean rates, limited capacity, container shortages, and other issues. Chassis are in short supply, and shipping containers are backing up in the ports, and there is no end in sight to the problem. These shortages make sending products via ocean a more complex endeavor.
The dynamic load factors –defined as how close to capacity an aircraft is when considering freight volume and weight in significant trade lanes –have been comparatively high since September of 2021. The dynamic load factor in Incheon, Guangzhou, Hong Kong, Beijing, Hanoi, and Osaka were all over 90 percent in the last week of September. According to Clive Data Services, Dynamic Load Factor was lower than anticipated in October, and capacity was almost flat.
In IATA’s September report, “air cargo volumes were stable at an elevated level,” which could be a good sign for air freight shippers because it means demand wasn’t as high as expected and could be a sign that air freight shipping will remain “relatively affordable compared to container shipping.”
Air Freight Carriers Are Responding to Increased Demand
Because of the growing demand for air freight, major carriers are adding more flights to alleviate shipping congestion. The additional flights were a response to a reported spike in e-commerce parcel volume by over $1 billion year-over-year from Asia and Europe.
Airfreight carriers have been busy picking up the excess freight due to the ocean freight shipping delays. However, you should select a reliable and experienced company that you can rely on to ship your cargo.
More Companies Are Relying on Air Freight to Relieve Shipping Bottlenecks
Supply chain problems have left many companies seeking alternatives for shipping and delivery. The use of expedited freight services and air cargo accelerated during the first half of 2021. It only makes sense that air freight cargo shipments have surged across the country, considering the levying of new port fees and the continued congestion at the ports.
Have You Looked at Utilizing Airfreight?
Airfreight has always been a practical option for many commodities. Products that naturally lend themselves to air freight include:
- Dietary products
- Nutraceuticals and pharmaceuticals
- Medical devices
- Computer chips
- Fashion accessories
- Luxury items
- Seasonal items
- Fast fashion
- Informercial products
- Many light or small items
Weight-to-volume ratios determine the cost of airfreight. When you work with an experienced freight forwarder and global logistics company, you can be sure that they will help you with any considerations for using air shipping.
Dedola Can Help You Optimize Your Air Cargo
At Dedola Global Logistics, we help clients of all sizes transport their goods quickly and efficiently. No matter the company size, or the shipment size, you’ll receive the same high-level customer care from us. We help our clients choose the shipping method that makes the most sense for them and ensure an efficient process from start to finish.
How do we make sure that your cargo arrives safely and efficiently every time?
- We have built decades of industry relationships that help ensure the best service for you.
- We offer chartered flights for fast, efficient, and dependable air freight services.
- We have direct and indirect routing strategies for the most efficient shipping.
- Our team has sophisticated operations expertise so that you can be confident of accurate, safe, and efficient delivery of your products.
- We provide the best tracking system available, TrakItPro, to continuously monitor your freight.
In the ongoing shipping environment, airfreight could be a wise choice to move your cargo efficiently. At DGL, we work to find the best shipping methods for all our customers, no matter the company or shipment size. During the supply chain challenges brought on by the Covid-19 pandemic, that may be airfreight.
Contact us today or call (562) 594-8988 for a consultation or free quote!