Shipping giant Maersk has said that air cargo will be needed as a reliable alternative to sea freight during the peak season. With there being improvement made to the ocean freight market in recent weeks there were still challenges ahead.
“Although the situation is improving across the ocean network and at ports in Europe, there are still a number of supply chain challenges that our customers are tackling” says Maersk.
Golden week, inflation pressure and lower consumer demand across the board have impacted supply and demand. With improved ocean freight conditions, the demand on the air freight market has reduced slightly, however the need for air freight as the reliable alternative is expected to remain high across Europe during peak season.
Looking at the overall air freight market, Maersk identified volatility. Volumes trending down but rates remaining higher than 2019 levels due to jet fuel costs, lack of passengers and then the impact of the war in Ukraine. Consumer spending across Europe was affected immensely by inflation reaching an all-time high of 9.1% in August. As we move into the winter months the future is fairly uncertain Maersk added.
With the energy crisis being the latest thing to reach the front headlines not only here in the UK but across Europe. Impacting heavily the energy and chemical sectors who are set to be the most affected. Russian and Ukrainian airspaces still remain closed and there doesn’t seem to be any signs on when this will change.
Importance of air freight
Air freight still remains an important factor globally and the aviation industry is making serious profit from it. Air cargo revolutionised the shipping industry vastly reducing shipping times for global freight.
Air freight is ideal for quick turnarounds and just-in-time supply chains. At TCB Group our services are designed just for that, for urgent shipments, perishable goods and valuable items.