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Air cargo gains from rising prices in ocean shipping

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Increased ocean freight rates, which are being caused by service disruption,are helping to encourage freightforwarders and shippers to use airfreight.
The airline association IATA said that air cargo is benefitting from “exceptionally congested” container shipping supply chains.

Cost-competitiveness of air cargo relative to that of container shipping has improved over recent months. The average cost of air cargo in May was six times more expensive than seafreight, compared with 12 times more expensive pre-crisis.

“Improved competitiveness compared to sea shipping should continue to make air cargo a bright spot for airlines while passenger demand struggles with continued border closures and travel restrictions,” said Willie Walsh, IATA director general.