Red Sea Situation Continuing To Impact Ocean Freight
Following recent attacks on commercial ships in the Red Sea, and the subsequent routing of ocean vessels around Africa, air freight has started to feel the knock-on effects.
The longer transit times and capacity issues in ocean freight have led to some exporters and importers moving orders by air freight during recent weeks. Therefore, air freight capacity has been stretched and we have witnessed an increase in freight rates on several Asia origin routes.
Some key airports hubs along Asia routes, such as Dubai and Bangkok, had to stop receiving cargo for 48 hours this week, due to what was described as ‘unprecedented volumes of cargo due to the Red Sea crisis’. Dubai in particular is a major gateway for transhipment services from Asia to the UK & Northern Europe.
As things stand, air freight rates between Asia and the UK have risen of late, but not as sharply as demand on most routes. However, if the situation in the Red Sea continues to disrupt ocean freight, then we may be likely to see air freight rates spike in the coming weeks.
Your Killick Martin team are monitoring the situation closely. If you require further information, or details of our extensive air freight services, then please do not hesitate to contact us.
