Air freight capacity is being impacted by the Red Sea crisis, as attacks on cargo ships have led to longer ocean freight transit times from Asia and a surge of orders being switched to air freight.
The vast majority of containerships leaving Asia for Europe are now being routed around the Cape of Good Hope, which has added 10-14 days to transit times, increasing the demand for air freight.
Two major transhipment hubs in Dubai and Bangkok came to a halt for up to 48 hours this week, due to unprecedented volumes of cargo caused by the Red Sea crisis. Both airports had been recently affected by a surge in traffic and stopped inbound flows to clear buildups of cargo.
Air freight rates from several Asia origin points have been rising, although most routes have not risen as sharply as demand. That said, if the routing of ocean freight services away from the Red Sea continues, we could see a larger spike in Asia air freight rates in the near future.
As ever, your Westbound team are monitoring developments and are ideally positioned to help you navigate through any supply chain disruption.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
