Several air cargo services from Asia have been impacted by high demand and that has been prior to us moving into this year’s peak season.
Many industry experts have predicted that we are about to witness one of the strongest peak seasons for demand ever, with fears that the current capacity may not be enough to cope with this year’s demand.
The geopolitical tensions in the Middle East have also contributed to the increase in air freight demand, as ocean freight vessels have been avoiding the conflict area and sailing the longer route around Africa.
As a result, Asian ports have been congested, space has been extremely tight and rates have spiralled, leading to some urgent orders moving to air freight.
Usually, the airfreight peak season gets going around this time of year, with retail and ecommerce businesses getting ready for the busy Black Friday and Christmas sales periods. Electronic product launches, including phones and tablets, also demand much more space at this time of year.
Asia air freight is very much a supply and demand market, where high demand accompanies high rates. We have already been seeing price increases on several routes during recent times, and the expectation is that may continue during the next few weeks.
As ever, the Killick Martin team are monitoring developments closely.
