Air cargo gains from rising prices in ocean shipping

High ocean freight rates caused by service disruption is helping push forwarders and shippers to use airfreight.
In its latest market summary, airline association IATA said that air cargo is benefitting from “exceptionally congested” container shipping supply chains.
It pointed out that the cost-competitiveness of air cargo relative to that of container shipping has improved over recent months, with the average cost of air cargo in May 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.