With a massive percentage of global trade passing through the Red Sea annually, the continued conflicts have impacted trade significantly. Due to attacks on cargo ships by Houthi rebels, many businesses are seeking alternative methods for transporting their cargo. One of these methods is air freight.
In February, a number of companies decided to reroute vessels or ceased operations temporarily. As a result, the transit times and prices of goods became cause for concern, and congestion and supply chain delays were at the forefront of business minds.
Because of this, alternative freight options have spiked in popularity, with air cargo seeing a remarkable rise in demand.
The Demand for Air Freight
Even in December 2023, air cargo popularity was soaring due to rising tensions in the Red Sea. According to the Air Transport Association (IATA), the global demand for air freight was up almost 11% compared to December in the previous year.
However, even with the popularity of air cargo still on the rise, this isn’t a solution that suits all. Walsh reminded us that not all cargo is ‘suitable for air transport’, but the exceptional circumstances have led to companies resorting to it for urgent shipments.
An Etihad Cargo spokesperson stated that there has been a ‘significant increase in demand and enquiries for air cargo capacity’, with most of the interest being from retailers, manufacturers, and freight forwarders.
Which Groups Are Still Sending Vessels Through the Red Sea?
Not all groups have ceased or reduced the number of vessels moving through the Red Sea and Suez Canal. While MSC opted to reroute vessels, CMA CGM Group has decided to increase the number of vessels travelling through these areas.
As the year progresses, we are likely to see more groups opting for air freight than sea freight as conflicts in the Red Sea continue. This brings an additional cost, with sea freight generally being 5-6x cheaper. However, recent events offer little choice if we wish to transport goods safely and timeously.
As these issues continue, Hawley Logistics is ready and willing to handle challenges as they come. We offer sustainable and efficient sea freight, air freight, and road freight for your needs.
