Recent years have seen big disruptions to supply chain with importers being as challenged as ever.
In 2020-2021 as Covid pandemic swept across the globe, we saw a significant misplacement of equipment resulting in empty containers not being available to load exports (particularly in the Far East) and so many empty boxes remaining at destination ports.
With equipment being stuck in wrong places of the world for prolonged periods of time, industry trying to operate under the shadow of restrictions and priority given to the global distribution of PPE, sea freight rates sky rocketed to unprecedented levels. Ocean freight rates in excess of 16,000 USD per 40’HQ container became an everyday reality and made businesses fight for survival, many of which did not make it.
As the market started to cool down, a new problem in sea shipping has arisen. From October 2023 to March 2024, the Houthis attacked more than 60 vessels in the Red Sea forcing most of the traffic to sail round the Cape of Good Hope in South Africa. This added 7-14 days’ extra time to transit, as well as a few hundred dollars per container in cost. Once again, this has put importers under tremendous pressure of trying to fulfil contracts while striving for financial survival.
Over the years shipping lines have not been helping things by trying to raise rates and improve margins artificially through withdrawing vessels from sea (so called blank sailings). It has caused major issues with space availability and crashed supply chains at times.
With unpredictability of sea shipping and long lead times, many business owners started turning to air freight as an obvious choice to better meet the demands of the markets. Retailers and final consumers had no choice but to accept higher costs of goods. As a reliable and quick way of obtaining goods so much wanted by the markets, air freight has become a new standard, no longer a plan B. We observe that for many it has replaced sea shipping, while some use it as a complimentary way of stocking up swiftly while waiting for bigger quantities to arrive in containers.
Importers and exporters of products find a huge value in our air freight services every day. In co-operation with our worldwide partners, we strive to secure the most competitive air freight rates, excellent lead times and the most reliable service. We keep our clients informed at each step of the way, from taking a booking through contacting the supplier, expediting goods and UK customs clearance to door delivery. Air shipments can be tracked on our website at any time. Shipping by air is a hassle-free process with real advantages to the functioning of a supply chain no matter what industry. Perhaps it is time for you to explore it?
