Spotlight on Supply Chains: Rising Demand in the Sky
With the current disruption of high seas shipping showing little sign of slowing down, many companies are turning to air freight as an alternative and more reliable option for international logistics operations to protect the integrity of global supply chains. .
As reported in the UK’s Daily Telegraph (November 2021), the air freight industry is “booming” due to persistent problems with global shipping supply chains, with air freight prices now at two. and a half times higher than before the pandemic. levels.
Global supply chains are very complex and a range of issues – including port closures at the start of the Covid-19 pandemic and the infamous container ship Ever Given that was struck in the Suez Canal – have had a devastating effect on their effectiveness.
Over the past two years, the Covid-19 pandemic has upended normal patterns of supply and demand, placing the shipping industry under intense pressure.
Global freight costs also rose as a result of the disruption: Ocean freight costs hit record highs and by August 2021 had tripled year-over-year.
Although shipping costs are now falling from their record highs, there is still a formidable congestion of ships to cross at many ports.
As the holiday season approaches, more and more businesses are using air freight as a fast and reliable means of transporting products to meet supply deadlines.
For example, Sony recently made headlines when it announced that it had chartered several flights loaded with PlayStation 5 consoles to travel to Heathrow Airport to replenish UK supplies, in order to meet holiday demand.
Logistics companies are resilient and adaptable; the adoption we are seeing in air freight services is an example of how companies are not afraid to explore different avenues to be able to meet consumer demand for their products.
Air freight supports the aviation industry, which we all know has been wiped out by the pandemic.
When passenger travel resumes, air freight will once again battle for capacity, with slots reverting to their pre-pandemic rights.
It is time for air freight to be recognized as a vital part of the aviation industry and not as a secondary service.