Red Sea Situation May Lead To Asia Air Freight Hikes

The ongoing situation hindering sea freight movements in the Red Sea area may be about to impact air freight too, as many are forecasting that air freight rates from Asia are about to start rising fast in the coming weeks.

As journeys times around the Cape Of Good Hope have increased significantly recently, resulting in ocean freight rates spiralling upwards, some exporters and importers have started to switch some orders to move via air freight.

As we learnt during the the post-pandemic period, when ocean freight is disrupted by major global events, the additional freight moving starts to impact available space on air freight, which in turn can lead to sharp increases in rates.

Although some orders have switched, it hasn't had a substantial impact on rates yet. This be because we are in a traditionally slow period of the year and volumes had been relatively low. However, if forecasts are to be believed, we could be about to witness an upward surge in the weeks building up to Chinese New Year if the situation in the Red Sea continues.

The Croft Cargo team are monitoring developments and will continue to work tirelessly to avoid disruption on our worlwide import and export air freight products. Should you require further information, then please do not hesitate to contact us.

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