Page 20 - STAT July 2024 for Magzter

specialreport

Freightos Air Index - S. Asia Export
$5.8

$3.3

Many shippers have 2024-06-16 $5.31
Asia, Southern-Americas, Northern
Asia, Southern-Europe $4
turned to air cargo as $1.3
an alternative due to the 25-JUN-23 03-SEP-23 12-NOV-23 21-JAN-24 31-MAR-24 16-JUN-24

congestion and expense
of ocean freight, especially Freightos Air Index - Middle East Export
$3.9
during the pandemic and
the Red Sea crisis.

Judah Levine
Freightos
$2.4
global logistics and supply chains, facilitat-
ing efficient and speedy transportation.
$1.6
However, their narrow and busy nature
2024-06-16
makes them susceptible to blockages, Middle East-Americas, Northern $2.77
geopolitical tensions, and piracy, which Middle East-Europe $1.61
$0.8
threaten international trade stability. 25-JUN-23 03-SEP-23 12-NOV-23 21-JAN-24 31-MAR-24 16-JUN-24
The BCG report pointed out that since
the beginning of the Houthi attacks on Freightos Air Index - China Export
international shipping in late 2023, around
470 container vessels have already been re- $6.7
routed. "Recent disruptions affecting pas-
sage through the Suez Canal and the Strait
of Hormuz led to re-routing via the Cape
of Good Hope," said Edward Findlay, Global
Sea Logistics Trade Manager, Europe/ Mid-
dle East/ IPBC, Kuehne+Nagel, in a recent
interview with The STAT Trade Times. $3.6
Explaining the situation, Findlay said
the Suez Canal blockage has caused
2024-06-16
cargo vessels to be diverted around the Asia, Greater China-Americas, Northern $5.46
Cape of Good Hope, resulting in a 15-day Asia, Greater China-Europe $4.27
$1.6
increase in journey lead times. This delay
has impacted global trade by causing 25-JUN-23 03-SEP-23 12-NOV-23 21-JAN-24 31-MAR-24 16-JUN-24
equipment shortages and congestion, Source: Freightos Terminal
particularly in Singapore and European increases sailing times by 10-12 days, Diving deep into the discussion, Levine
transhipment ports. leading to equipment shortages, delays added that disruptions in maritime
Similarly, in a recent interview with The in global vessel routings, congestion at chokepoints significantly affect the flow
STAT Trade Times, Jeffrey Shih, CEO, Di- major gateway ports, and increased ship- and cost of goods. During the pandemic,
merco Express Group, mentioned, "Using ping and supply chain costs as companies the surge in ocean volumes led to rates
the Suez Canal as an example, re-routing shift more goods to air freight to mitigate exceeding $20,000 per container. Ports
vessels around the Cape of Good Hope these factors." experienced overwhelming congestion
18 | JULY 2024 www.stattimes.com