Ocean Freight Issues Lead to Increase in Airfreight Demand

Global transportation—like many industries—has faced unparalleled disruptions over the past year. Now, in 2021, there are new and different challenges added to the mix.

Over the last few months, ocean freight has seen a significant increase in demand, as well as equipment shortages in Asia. This led to longer dwell times for the vessels, which inevitably delays export shipments. In the United States, carriers continue to reduce the amount of exports in order to reposition empties back to Asia. Additionally, the uptick in vessel accidents due to inclement weather has added to the delays. Due to these issues with ocean freight, air freight demand has increased significantly.

Some forwarders are hoping that the two week Chinese New Year holiday break – starting February 12 – will give shipping lines and ports the chance to catch up.

Until sea freight overcomes this bottleneck, air freight has been the main alternative for businesses across the globe. The method of transportation is not the only factor causing disruption this year however.

Shipping across borders inevitably means customs and global compliance will play a vital role in your supply chain. It’s important to keep updated on the changing global trade climate, so your company can remain compliant and avoid customs delays. This is especially true with a new U.S. administration in place and Brexit in full swing.

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