China - Air Congestion & Rates Push Clients To Ocean

Congestion issues in China, along with record high rates, are pushing UK importers away from air freight and towards the longer transits of ocean freight.

While there has been a slight easing of the congestion issues in Shanghai, and an indication last week that air freight rates may be levelling off, numerous UK importers have turned to ocean freight to keep their supply chains moving.

Huge truck queues have resulted in cargo missing flights at times and while the issues initially only affected Shanghai, the congestion has spread to other Chinese airports such as Guangzhou, Zhengzhou, Shenzhen and Xiamen.

Westbound Director - Ryan Clark - commented "The longer term concern for the Asia/Europe air freight industry is that importers are converting to ocean and their supply chains are adapting and evolving." 

"While PPE is in mass demand right now, it will be interesting to see what happens longer term when PPE volumes subside and importers have become used to the longer lead times. Will they return to airfreight when there is such a big difference in costs?"

For now, congestion is improving but massive volumes of PPE continue to roll into Chinese airports. 

Westbound continue to offer our range of consolidation and direct air freight services to and from Asia.

 

At Westbound Logistics we pride ourselves in offering personalised and tailored logistics solutions. To find out more please call 01375 800800‚Äč oemail info@westboundglobal.com.