13.12.2017 | Strong capacity demand is causing delays in airfreight shipments
“Never seen” demand for air cargo space has caused heavy delays in transit times during the last few weeks. This difficult situation in air cargo market has been continuing already for some time and unfortunately there is no sign for any change in the near future.
Normally there is a high demand during traditional peak season from Far East to Europe and North America. This time most of the freight corridors are affected including trade lanes from Europe to Asia and South and North America.
The subject has been widely discussed in the international media including The Loadstar’s news ”A Christmas bonus for carriers as demand for air freight capacity 'goes crazy'”
Air cargo capacity does not meet the high demand
Especially the increased e-Commerce is a major reason for the high demand in the market. Also improved demand for investment goods and strong global economics have increased the demand for air cargo space. This situation has reflected with increased market rates when the capacity cannot meet the increased demand. Customers are willing to accept higher rates to secure their supply chain performance. We can say that air cargo dynamics has changed from the past’s overwhelming belly capacity to the current strong increase in air cargo demand.
The strong market growth has also a direct impact on air cargo handling capacity: handling times are longer at congested air cargo terminals and there are not enough hands and space to handle the increased volumes.
Furthermore there have been some strikes in Frankfurt and Sao Paulo airports that has caused additional delays.
Impact visible also in Finnish air cargo market
The same development can be seen now both in export and import to/from Finland: booking and transit times are longer since some of the intercontinental flights are already closed for bookings several weeks in advance. The cancellation of AirBridgeCargo B747 freighter flights to/from Helsinki and Christmas’ mail traffic are also having a negative impact on the space capacity.
Kuehne + Nagel will support our customers to secure their supply chain performance in this very critical market situation. We kindly ask our customers to arrange bookings in advance and to take into consideration this difficult air cargo market. Your contact person at Kuehne + Nagel is to assist you and will provide additional information.
27.10.2017 | General Strike in Italy 30th and 31st of October
All the major Unions declared a General Strike for 30th and 31st of October due to the pending renewal of the National Contract for Logistics, Transport and Freight Forwarding.
We expect that the strike should affect mainly transportation but it could impact also terminal operations, gates, warehousing and general activities of forwarding.
It has also been announced a local strike in Genoa for the 2nd and 3rd of November extending the disruption to the whole week, since November 1st is a National Holiday.