Paul Berger of The Wall Street Journal is reporting that air transport is rising at a double-digit pace as companies look to fly goods around the disrupted ocean trade corridor. Berger writes:
Retailers and manufacturers are flying more goods around the shipping crisis in the Red Sea, industry experts say, helping boost international airfreight operators after a long period of sagging cargo volumes.
The strategy, the latest sign of how companies are adjusting their supply chains in response to geopolitical shock waves and disruptions, comes as European importers are seeking to avoid delays caused by longer voyages around Africa by containerships that usually travel through the Suez Canal. […]
Logistics specialists say global air cargo rates are also rising because of strong demand from growing Asian e-commerce companies, such as Temu and Shein, that rely on aircraft to ship goods to consumers. “We expect this heightened demand to continue,” said Asok Kumar, executive vice president of global airfreight at Germany-based freight forwarder DB Schenker.
Read more here.
