Air Cargo Is At An All Time High Since The Pandemic Began
Economies across the globe are still struggling to climb out of the hole dug by the COVID-19 pandemic. A huge speed bump in the economic recovery has been complications in the supply line. Those reliant on ocean carriers have experienced shortages, delays in shipping, and exuberant fees. Fortunately, air freight shipping has emerged as the reasonable alternative during these difficult times.
Air Cargo vs. Container Shipping
A big reason for an increased demand for air cargo is its cost competitiveness in relation to container shipping. Pre-pandemic, the average price of global air cargo was 12 times more expensive than container shipping, according to the Journal of Commerce. Since the start of the pandemic, however, the price dropped to six times more expensive. This is due in large part to spikes in container shipping prices.
As the price gap between these two shipping options decreases, the appeal of air-freight shipping increases. While the price of air-freight shipping has increased as well since the start of the pandemic, the hike pales in comparison to that of container shipping. This is the primary reason many businesses have opted for air cargo in recent months.
The diminishing price gap between air cargo and container shipping has led to a huge boom in the air cargo industry. Transport company C.H. Robinson reported a 43% increase in metric tons shipped during the first half of 2021. According to Asean Lines, “Demand has been incredibly strong, partially driven by conversions of some ocean freight to air, and a recovery of demand in Europe,” CEO Robert Biesterfeld told analysts in an earnings call.
As the global economy continues to recover from the pandemic, the demand for timely shipping will rapidly increase. Experts believe that the air cargo industry is prepared to deal with this increase. It will be interesting to see if this increased demand will cause an increase in pricing in an attempt to keep demand levels at a reasonable level.
Air Cargo Can Meet Demands Container Shipping Can’t
We have already discussed how the increase in consumer spending has increased demand. Unfortunately for shippers and business owners, the container shipping industry is having a difficult time meeting these demands. Because of this, container shipping is experiencing deteriorating schedule reliability, which fell to 39.5% in 2021, down from 83.5% in June 2019.
While COVID lockdowns and restrictions still cause complications, air cargo can meet the demands that container shipping can’t. While airliners are dealing with shortages as are container shipping companies, it is not at the same level.
How Trifecta Transport Can Help
Dealing with logistics is already stressful when everything is going in your favor. Factor in a pandemic, increased shipping prices, and shipping shortages, and it can be too much to deal with. That’s why our team at Trifecta Transport is here to help. We streamline your logistics process to save you the hassle of dealing with it on your own or hiring an in-house logistics team.
When you work with us, we book, track, and manage your shipments while everything is within your budget. We have specialized departments for each logistic sector to ensure you get the shipping method that best suits your business needs. We work hard to make sure your logistic needs are met when you need them most.
Trifecta Transport has the all-in-one solution to your specific logistic needs. If you have any questions about the services we offer, feel free to give us a call at 1-800-469-1428, or email us at firstname.lastname@example.org. We work with carriers in the United States, Mexico, and Canada. We can’t wait to help you.