Air cargo demand continues to rise, with October seeing a 3% increase compared to pre-pandemic levels in 2019, according to Clive Data Services. As businesses prepare for the peak holiday season, many are shifting freight from ocean to air to mitigate supply chain disruptions. While demand is growing, Clive’s Managing Director, Niall van de Wouw, notes that it has not yet reached the levels some stakeholders anticipated. Capacity also saw a modest 1% increase from September, signaling that the busiest period of the year is still ahead.
Market Trends Favor Air Freight
Air freight remains a preferred choice for many businesses despite high costs. In October, rates surged 155% above 2019 levels, while overall cargo capacity dropped by 13%. This pricing trend underscores air transport’s value in overcoming global logistics bottlenecks.
Why More Businesses Are Choosing Air Freight
With U.S. port congestion persisting, many shippers are prioritizing air freight to meet tight delivery schedules. Some retailers have already secured alternative transport solutions by chartering ships or shipping goods earlier. However, rising inflation and shipping costs could deter some businesses from using air freight over ocean transport.
Despite these concerns, air freight has become more cost-effective than it was pre-pandemic. The International Air Transport Association (IATA) reports that in September, air cargo was only three times more expensive per kilogram than ocean shipping—significantly lower than the 12.5 times cost differential pre-pandemic. Additionally, ocean freight rates surged to more than seven times their pre-pandemic average by the end of October, according to Freightos data.
Air Cargo’s Role in Global Trade
The ongoing supply chain challenges, including port congestion and factory closures due to COVID-19, have prompted companies to embrace air freight as a strategic solution. Major corporations such as Colgate-Palmolive have turned to air transport to offset factory shutdowns and maintain retail supply chains. Similarly, Crocs has significantly increased its air freight spending, budgeting up to $75 million in 2022 to secure timely deliveries for its Spring and Summer collections.
The Future of Air Freight Logistics
As global trade continues to navigate disruptions, air cargo remains a vital solution for businesses seeking speed, reliability, and efficiency. Carloking Freight & Logistics is committed to providing tailored air freight solutions to help businesses stay ahead of supply chain challenges. Whether you need expedited shipping for peak season or long-term logistics planning, our expertise ensures your cargo reaches its destination on time and in optimal condition.
Partner with Carloking Freight & Logistics
For seamless and efficient air freight solutions, trust Carloking Freight & Logistics. Contact us today to optimize your shipping strategy and ensure uninterrupted supply chain operations.