Shippers and forwarders are now turning
to air freight options to avoid lengthy delays at U.S. west coast ports.
Indeed, some logistics executives believe the ocean capacity crunch could
see the Transpacific air freight peak season continue through the first
quarter of next year.
‘Go-slows’ by members of the
International Longshore and Warehouse Union (ILWU) allied to high demand
and a lack of trucking capacity have seen delays at west coast ports increase
in recent weeks, prompting logistics planners to find alternative options.
While some have been shipping into U.S. east coast ports, many others
are now looking at air freight solutions, according to Li Wenjun, head
of Air Freight, DHL Global Forwarding Asia Pacific.
“With the current situation, in Asia
Pacific, we have experienced an increased volume shift from sea freight
to air freight due to U.S. port delays,” he said. “In addition,
this is also typically the high season for technology goods.
“Given the increased demand for air
freight and the stable airfreight situation in terms of capacity supply,
we see this peak period lasting until the end of March if nothing is done
to resolve the situation.”
An Asia-based executive for a European airline
active in U.S. markets who wished to remain anonymous said demand on transpacific
lanes was already high, even before port delays became a factor in shippers’
modal strategies.
“We are seeing a reasonable peak and
increased demand in the run up to Thanksgiving,” he said. “It
is difficult to say if it is related to the port disruption as we have
seen demand into the U.S. relatively strong for some time.”
Happier Times: A giant, yellow vinyl duck
created by artist Florentijn Hofman joined a Tall Ships Festival in
the Port of Los Angeles this past August. Right now, slowdown by port
workers has left many scrambling as the Christmas rush continues. |
Cathy Roberson, senior
analyst at Transport Intelligence, told FlyingTypers that many
retailers were now becoming concerned with stock levels. “As the
holiday season approaches, air freight is becoming more of an option for
shippers,” she said.
“The National Retail Federation is
forecasting a 4.1 percent rise in holiday spend and an 8-11 percent rise
in online sales, so for this to be a successful season for shippers they
will need to be ready to quickly replenish inventory.”
She said air freight demand would also be
boosted by new retail trends. “It’s expected that airfreight
will see a peak season this year as a result of not only the congestion
problems at the ports, but also because of the growing influence of online
and omnichannel retail sales,” she said.
“UPS and FedEx have been working with
retailers to avoid issues from last holiday season. Among the issues that
UPS faced last year was that the company found it difficult to obtain
necessary air cargo space to help with last minute shipments prior to
Christmas Day. I imagine this year UPS will have adequate air cargo space
on hand.”
SkyKing |
