by Lloyd's List

1 October 2024 (Lloyd's List) - SHIPPERS are increasingly looking to the air cargo space to fulfil freight requirements because of increasing costs and continued congestion on more traditional ocean routes, according to London-based analysts Drewry.

Drewry, which today unveiled a new monthly online air freight market intelligence service, Airfreight Insight, noted how this year has been marked by supply chain disruption for ocean freight shippers. This has “forced many [shippers] to think and act creatively to alleviate the pressures on their global transport networks”.

“With unreliable transit times and myriad problems in ocean transport, air freight has stepped-in and aided procurement teams at a time of need,” it said.

This has resulted in a double digit growth in air freight volumes, most notably out of Asia, according to Drewry.

“But freighter capacity has remained buoyant enough to sustain this growth, and although rates have gone up, they have not matched the steep increases in ocean spot rates.”

Drewry’s “Airfreight vs Maritime Price Multiplier”, a comparison of its East-West Airfreight Price Index and Drewry’s East-West Container Freight Rate Index, shows that despite the recent surge in air freight the cost ratio between the two transport modes has narrowed from 25.9x to 5.6x.

While the switch of ocean business to air freight will be of concern to some carriers, others though will be reaping the rewards. Carriers such as Maersk and CMA CGM have invested heavily in the air cargo business in recent years, taking advantage of the lucrative profits on offer in diversifying their respective businesses.

The world’s largest container shipping line Mediterranean Shipping Co meanwhile has been one of the most active in the sector. The Geneva-based giant has steadily built up its air freight operations, while its latest move involved acquiring a 15% stake in the Italian airport of Genoa.