-
Airfreight is growing in popularity among global shippers with cost and congestion issues continuing to hamper ocean transport
-
Drewry Airfreight Insight, a new online airfreight market intelligence service recently launched by Drewry’s Supply Chain Advisory division, confirmed the trend
-
This year has been one of continued supply chain disruption for ocean freight shippers
-
With unreliable transit times and various problems in ocean transport, airfreight has stepped in and helped procurement teams in their time of need
Airfreight is growing in popularity among global shippers with cost and congestion issues continuing to hamper ocean transport.
This development has been confirmed by Drewry Airfreight Insight, a new online airfreight market intelligence service recently launched by Drewry’s Supply Chain Advisory division.
In a statement, Drewry noted that this year has been one of “continued supply chain disruption for ocean freight shippers,” forcing “many to think and act creatively to alleviate the pressures on their global transport networks”.
It added: “With unreliable transit times and a myriad problems in ocean transport, airfreight has stepped-in and aided procurement teams at a time of need.”
Drewry has seen double-digit growth in airfreight volumes, especially out of Asia, with congestion affecting ocean freight owing to issues such as the Red Sea crisis.
Still, freighter capacity has remained “buoyant enough to sustain the growth,” Drewry said.
And while rates have increased, “they have not matched the steep increases in ocean spot rates,” Drewry added.
It noted that the cost ratio between airfreight and ocean freight spot rates has narrowed from 25.9x to 5.6x between Dec 2023 and Sep 2024 even with the demand boom in airfreight.
Chantal McRoberts, director and head of advisory within Drewry Supply Chain Advisors, said, “procurement teams within global shippers/BCOs and forwarders need access to up-to-date market insights across both ocean and air sectors.”
The new monthly service focuses on key drivers of the airfreight market (supply, demand and load factors) on all key routes as well as key regional indices enhanced by spot rate benchmarks against 127 of the most popular air routes.
Total global air cargo demand in July 2024 rose by 13.6% in terms of cargo ton kilometers compared to July 2023 levels, according to the International Air Transport Association. This marks the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching highs unseen since the record peaks of 2021.
