Money
Suppliers turning to air transport to speed up deliveries
Fresh data from the International Air Transport Association shows air cargo was up 9 per cent in September as more suppliers look towards air transport
More suppliers are turning to air transport for speed, but severe capacity constraints continue to limit the ability of air cargo to absorb the extra demand.
The latest results show that demand across the sector is continuing to soar well above pre-pandemic levels and capacity constraints are still a big issue.
Global demand for air freight has increased by over 9 percent when compared with September 2019 levels.
This is difficult when capacity is 8-point-nine percent below what it was before Covid-19 brought much of the world to a grinding halt.
The report says that ongoing issues with shipping disruptions are leading to slower delivery times, and as such, companies are reaching for air transport to get products delivered quickly.
Meanwhile, when comparing the cost of air cargo to container shipping the average price to move air cargo was 12.5 times more expensive than sea shipping pre-Covid and is now only three times more expensive.
The organisation’s Director General says “if not addressed, bottlenecks in the supply chain will slow the economic recovery from COVID-19 and governments must act to relieve pressure “