Air Freight Feeling Effect Of Red Sea Crisis

February 14, 2024

Following ongoing attacks on commercial ships in the Red Sea, and the subsequent routing of ocean freight vessels around Africa, air freight has started to feel the knock-on effects.

Longer transit times and equipment shortages in ocean freight have led to some exporters and importers switching orders to 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.

Key airport hubs along Asia routes, notably 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.

While freight rates have risen between Asia and the UK of late, it has not been 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.

The Freedom Logistics and Atlantic Pacific teams 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.

 

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