Air freight soars above congested ocean freight system: Drewry
With myriad problems in ocean transport, air freight has stepped in and aided procurement teams at a time of need.
Drewry Airfreight Insight, a new online air freight market intelligence service launched by Drewry’s Supply Chain Advisory division, confirms airfreight’s growing popularity among international shippers as cost and congestion issues continue to impede ocean transport.
"2024 has been a year of continued supply chain disruption for ocean freight shippers, and has forced many to think and act creatively to alleviate the pressures on their global transport networks. With unreliable transit times and a myriad problems in ocean transport, airfreight has stepped in and aided procurement teams at a time of need," according to the latest update from Drewry.
As congestion has plagued the ocean freight sector, Drewry has seen double digit growth in air freight volumes, particularly out of Asia, but freighter capacity has remained buoyant enough to sustain this growth, the update added. "Although rates have gone up, they have not matched the steep increases in ocean spot rates. Despite the demand boom in air freight, between December 2023 and September 2024, the cost ratio between air freight and ocean freight spot rates has narrowed from 25.9x to 5.6x (see below).
“Procurement teams within global shippers/BCOs and forwarders need access to up to date market insights across both ocean and air sectors,” says Chantal McRoberts, Director and Head of Advisory, Drewry Supply Chain Advisors. “This new monthly service provides the timely insights stakeholders need to determine the best fit transport mode for their business.”
The service will focus on the key drivers of the airfreight market (supply, demand and load factors) on all key routes and as well as key regional indices is enhanced by spot rate benchmarks against 127 of the most popular air routes, the update added.
