Businesses turn to air freight amid Red Sea crisis disruptions in ocean shipping

Businesses, particularly in the consumer retail and apparel sector, are resorting to air freight to safeguard their supply chains and mitigate disruptions caused by Houthi militia attacks on container ships in the Red Sea and Suez Canal, reports Oslo-based Xeneta.

Recent data from Xeneta indicates a 62% spike in air cargo volumes from Vietnam to Europe, a key trade route for apparel, in the week ending January 14. Niall van de Wouw, Xeneta Chief Airfreight Officer, notes that this surge is significant, especially during a typically quieter time for air freight, and suggests a potential shift from ocean to air freight due to the Red Sea crisis. The upcoming Lunar New Year may also be contributing to the rise in volumes.

Air freight rates from Vietnam to Europe have increased by 10%, and further cost increases may occur as rising volumes strain capacity and load factors. The next two weeks will provide more clarity on whether this trend represents a lasting shift from ocean to air freight.

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• Source: https://www.aviation24.be/airlines/businesses-turn-to-air-freight-amid-red-sea-crisis-disruptions-in-ocean-shipping/