Customer reports, news and press releases.

Strong air freight market is coming to a head

As already informed in August 2017, the consistently strong air freight demand has continued and lead to the expected very tight air cargo market, which causes capacity bottlenecks and strong increases of air freight rates.

This development is driven by the relation between the growing demand and the supply of capacity. According to the International Air Transport Association (IATA), the air freight demand has exceeded and will further surpass the capacity growth. This results in higher capacity utilization up to capacity bottlenecks on all major trade lanes. Backlogs are forming whereby transit times are increasing. At the same time air freight rates are rising up to the highest average rates since January this year.

Carrier and forwarder are facing this situation especially in the European and Asian market, as the growth rates for the air freight demand are particularly high. But also the load factor on transatlantic routes is at the maximum, which is felt by capacity and price pressure.

Additionally slot restrictions at airports (e.g. the European Amsterdam Schiphol Airport), the strike of ground handling agents at Frankfurt Airport, special sales actions like “Black Friday” as well as the continuous shortages of sea freight capacity contribute to the limitation of air cargo capacity.

According to Drewry, a research company, the peak season will continue for the rest of the year with further increasing air freight rates.

For this reason, it is recommended that air freight shipments be booked as early as possible, so that they can be dispatched as planned. For very urgent shipments, please contact your local sales person in order to find appropriate solutions, e.g. service upgrade for your shipments.

Of course, DACHSER is continuously working on alternative solutions to represent our customer’s interests in the best way and avoid delays as far as possible.

DACHSER is further working on measures as DACHSER’S own charter flight from Europe to China and reverse, shifting goods to smaller airports and increasing capacity
with strategic airline partners.

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