If I have learned anything over three decades-plus of working in airfreight, it’s that when it comes to moving goods around the globe, there’s always going to be something for shippers to deal with.
During peak season 2023, that “something” was a combination of drought in Panama that caused delays for container ships bearing cargo from Asia to the east coast of the US and Europe, as well as unprecedented moves by upstart e-commerce companies intent upon gobbling up shipping capacity in their rush to get goods to shoppers in time for the holidays.
In the countdown to the rush, most shipping industry experts were forecasting the September-to-December peak season to be marginal at best.
From my perspective overseeing global cargo for a global aviation services group, the season got off to a relatively strong, if not, very exciting start, with business from those aforementioned e-commerce outfits surging early on.
The surge continued until close to the end of November, when the Panama drought began to back up traffic at the “Big Ditch”.
According to my business contacts, container ship companies at the time were being asked to pay from $900,000 to $1.2 million in additional charges per ship to secure preferred access to the Canal.
That forced a number of ships to head south instead around Cape Horn at the southern tip of South America, which resulted in increased cost and transportation time, with deliveries of goods for holiday shoppers delayed by at least a couple of weeks.
Then, just before Christmas, another “something” arose: trouble at the Suez Canal spurred by the military conflict between Israel and Gaza.
A highly travelled route for trade between Europe and Asia, the Suez Canal is accessed from the Red Sea in the south, where the Bab-el Mandeb strait between Yemen and Djibouti stretches only about 14 nautical miles wide, making cargo ships easy targets for Houthi rebels who are based in western Yemen alongside the strait and backed by Iran.
According to the U.S. Department of Defense, since mid-November those rebels have launched more than two-dozen attacks on merchant vessels operating in the Red Sea, spurring responses from Operation Prosperity Guardian, a US-led international maritime task force involving 22 nations that is focused on defending against the attacks.
One look at current headlines reveals the situation to be far from resolved.
In the meantime, shipping lines such as Maersk, CMA CGM, and Mediterranean Shipping Company have been diverting cargo ships around the Cape of Good Hope at the southern tip of Africa, adding cost along with two to four weeks of shipping time from factories in Asia to store shelves in Europe, depending on weather and the speed of the ships.
The delays don’t necessarily end there. With much longer sailing time around Africa, ships with empty containers are running late returning to Asia to pick up their next loads back to Europe.
The global cargo operation I oversee benefited from similar circumstances during the pandemic, when ocean freight slowed significantly following the same roundabout route, making air cargo and cargo charters more attractive for certain freight forwarders and shippers.
The takeaway from all of the above? With friction in spots around the world, and the post-holiday low season now upon us, it’s an optimal for shippers to consider air cargo charter to get their time-sensitive goods where they need to be.
Air cargo charter offers conveniences and reliability that outstrip container shipping via ocean freight even at the best of times.
Speaking solely of the operation that I currently oversee, shipping clientele can look forward to 24/7/365 availability for chartered cargo flights, with coverage available from experts who are strategically located in different offices in regions all over the world.
Most of our air cargo charter experts have previous work experience with freight forwarders and/or cargo airlines, so they know how to respond quickly to requests and secure precisely the aircraft to fill their clients’ needs.
More than anything, air cargo charter services provide the most assured way of transporting cargo from point A to point B, especially in times of weather, labour, economic, or diplomatic uncertainty.
While shippers can expect to pay a premium for the service, the gap between air cargo charter and ocean freight tends to fluctuate.
Right now for instance, rates for the former have been coming down due to increased availability of cargo aircraft during low season, which traditionally lasts from January through March.
With continued stresses at the Suez Canal and Panama Canal – a recent piece from Foreign Policy noted water levels at the latter are “lower than ever” – those rates aren’t likely to stay down forever, so the window of affordability to sample air cargo charter may close sooner rather than later.
So, what companies might find the shipping solution they’re looking for with air cargo charter?
Freight forwarders that seek the fastest and most assured transportation for their clients, as well as e-commerce outfits, which basically run on the promise of next-day delivery.
Indeed, any company whose cargo requires “just in time” delivery and fears finding themselves in hot water with ocean freight these days stands to benefit from air cargo charter.
Whatever means a shipper chooses to move cargo at the moment, they would be wise to bear in mind that things can change in an instant.
Just the day before I wrote this article, I received a call from an executive at an airport in the United Kingdom that is working to attract more cargo business.
“What’s going on in the cargo industry these days?” he asked.
“Oh God,” I responded, “I don’t even know where to begin.”
This article was published in the February 2024 issue of Air Logistics International, click here to read the digital edition and click here to subscribe.