Airfreight demand continues to rise as shippers seek flexibility

Global airfreight volumes continued to grow in September, marking the third consecutive month of increasing demand.

According to Xeneta, air cargo spot rates were 27% higher than the same month last year, while demand growth continued to outpace the increase in available capacity.

But perhaps the more interesting change is how shippers are buying airfreight capacity.

More businesses are opting for shorter-term agreements rather than locking themselves into long-term fixed rates. Around 60% of new contracts starting in the third quarter were for three months or less, compared with just 25% during the same period last year.

With continued uncertainty around freight rates, capacity and global trade, shippers are increasingly looking for flexibility in their freight agreements.

There is also the potential for more ocean freight to shift to air if ongoing congestion, unreliable schedules and rising ocean rates continue.

For Australian importers and exporters, having flexibility across your freight options is becoming increasingly important.

At End to End Logistics, we can help you assess whether airfreight could be the right option when ocean freight delays or capacity constraints start to impact your supply chain.