WHAT A DIFFERENCE A YEAR MAKES BY Glyn Hughes, Director General of The International Air Cargo Association TIACA By looking at the pure data, the numbers would indicate that air cargo volumes have not just returned to pre-Covid levels but, in fact. the industry has moved on beyond them, with the last six months showing double-digit growth compared to 2023. But this then generates several often-asked questions; Where is the business coming from? Will it continue? What will happen in Q4? Is it all e-commerce? The answers to those questions are not easily addressed. What we do know November 2023 saw Houthis in Yemen announce they would attack commercial ships associated with Israel, the US and Europe sailing through the Red sea in response to Israel’s military action in Gaza. Up to the middle of July, Bloomberg reported that there have been over 65 reported incidents with 18 ships having been struck with missiles. Despite military action targeting the missile launch sites, the attacks continue. Maritime analysts and risk assessors suggest that the attacks will likely to continue for the remainder of 2024 and into 2025. Maritime operators have stressed they will not return to the shorter more efficient Red Sea shipping lanes until it is safe to do so for crew and cargo. The consequential impact on journey times from Asia to Europe and on overall shipping costs has resulted in the narrowing of air cargo / maritime differentials. A more competitive air cargo industry results in increased volumes. Shortages in shipping containers also promote a shift to air cargo. To learn more, read the article: https://lnkd.in/ehMU3iUk #AirCargo #AirFreight #SupplyChain #Logistics #AirCargoWeek #ACW #Cargonews
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Global Sr Sales Executive Logistics Optimization at Unisys | Driving Optimization Through AI | 8x President's Club Award Winner
"Capacity could become tight as peak period in Q3 is already seeing some advance contracts being signed." The ability to optimize capacity and manage exceptions is critical to lowering OpEx costs and increasing revenue opportunities per flight. Unisys can help with Logistics Optimization #AirCargo, #Logistics, #AI
WHAT A DIFFERENCE A YEAR MAKES BY Glyn Hughes, Director General of The International Air Cargo Association TIACA By looking at the pure data, the numbers would indicate that air cargo volumes have not just returned to pre-Covid levels but, in fact. the industry has moved on beyond them, with the last six months showing double-digit growth compared to 2023. But this then generates several often-asked questions; Where is the business coming from? Will it continue? What will happen in Q4? Is it all e-commerce? The answers to those questions are not easily addressed. What we do know November 2023 saw Houthis in Yemen announce they would attack commercial ships associated with Israel, the US and Europe sailing through the Red sea in response to Israel’s military action in Gaza. Up to the middle of July, Bloomberg reported that there have been over 65 reported incidents with 18 ships having been struck with missiles. Despite military action targeting the missile launch sites, the attacks continue. Maritime analysts and risk assessors suggest that the attacks will likely to continue for the remainder of 2024 and into 2025. Maritime operators have stressed they will not return to the shorter more efficient Red Sea shipping lanes until it is safe to do so for crew and cargo. The consequential impact on journey times from Asia to Europe and on overall shipping costs has resulted in the narrowing of air cargo / maritime differentials. A more competitive air cargo industry results in increased volumes. Shortages in shipping containers also promote a shift to air cargo. To learn more, read the article: https://lnkd.in/ehMU3iUk #AirCargo #AirFreight #SupplyChain #Logistics #AirCargoWeek #ACW #Cargonews
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Need a good read? Check out this article by Glyn Hughes on the changes that we have seen influence the air cargo industry over the past year and what we should expect. A big thank you to Air Cargo Week for featuring Glyn in this edition. #aircargo #airfreight #supplychain #logistics #freightforwarders #freightforwarding #gsa #gssa #groundhandlers #groundhandling #manufacturers #handlingagents #informationtechnology #shippers #supplychainmanagement #supplychainmanagers #logisticsmanagers #logisticsmanagement
WHAT A DIFFERENCE A YEAR MAKES BY Glyn Hughes, Director General of The International Air Cargo Association TIACA By looking at the pure data, the numbers would indicate that air cargo volumes have not just returned to pre-Covid levels but, in fact. the industry has moved on beyond them, with the last six months showing double-digit growth compared to 2023. But this then generates several often-asked questions; Where is the business coming from? Will it continue? What will happen in Q4? Is it all e-commerce? The answers to those questions are not easily addressed. What we do know November 2023 saw Houthis in Yemen announce they would attack commercial ships associated with Israel, the US and Europe sailing through the Red sea in response to Israel’s military action in Gaza. Up to the middle of July, Bloomberg reported that there have been over 65 reported incidents with 18 ships having been struck with missiles. Despite military action targeting the missile launch sites, the attacks continue. Maritime analysts and risk assessors suggest that the attacks will likely to continue for the remainder of 2024 and into 2025. Maritime operators have stressed they will not return to the shorter more efficient Red Sea shipping lanes until it is safe to do so for crew and cargo. The consequential impact on journey times from Asia to Europe and on overall shipping costs has resulted in the narrowing of air cargo / maritime differentials. A more competitive air cargo industry results in increased volumes. Shortages in shipping containers also promote a shift to air cargo. To learn more, read the article: https://lnkd.in/ehMU3iUk #AirCargo #AirFreight #SupplyChain #Logistics #AirCargoWeek #ACW #Cargonews
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Important analysis for Alaska and Anchorage as Ted Stevens Anchorage International Airport continues to provide strategic value for the World's cargo Airline industry
WHAT A DIFFERENCE A YEAR MAKES BY Glyn Hughes, Director General of The International Air Cargo Association TIACA By looking at the pure data, the numbers would indicate that air cargo volumes have not just returned to pre-Covid levels but, in fact. the industry has moved on beyond them, with the last six months showing double-digit growth compared to 2023. But this then generates several often-asked questions; Where is the business coming from? Will it continue? What will happen in Q4? Is it all e-commerce? The answers to those questions are not easily addressed. What we do know November 2023 saw Houthis in Yemen announce they would attack commercial ships associated with Israel, the US and Europe sailing through the Red sea in response to Israel’s military action in Gaza. Up to the middle of July, Bloomberg reported that there have been over 65 reported incidents with 18 ships having been struck with missiles. Despite military action targeting the missile launch sites, the attacks continue. Maritime analysts and risk assessors suggest that the attacks will likely to continue for the remainder of 2024 and into 2025. Maritime operators have stressed they will not return to the shorter more efficient Red Sea shipping lanes until it is safe to do so for crew and cargo. The consequential impact on journey times from Asia to Europe and on overall shipping costs has resulted in the narrowing of air cargo / maritime differentials. A more competitive air cargo industry results in increased volumes. Shortages in shipping containers also promote a shift to air cargo. To learn more, read the article: https://lnkd.in/ehMU3iUk #AirCargo #AirFreight #SupplyChain #Logistics #AirCargoWeek #ACW #Cargonews
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39 Days since the Red Sea reroute started 𝐑𝐞𝐜𝐞𝐧𝐭 𝐞𝐯𝐞𝐧𝐭𝐬 The Red Sea crisis persists with repeated vessel attacks. Just five days ago, two anti-ship missiles were launched at the chemical tanker "Chem Ranger," but the vessel remained unharmed. The situation remains tense and concerning. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐞 In a coordinated effort, the United States and the United Kingdom took action on January 11, 2024, launching air and naval strikes on Houthi sites in Yemen in response to the relentless attacks on Red Sea shipping. The US has subsequently conducted more additional strikes against the group, demonstrating a united front to address the crisis. 𝐂𝐚𝐫𝐫𝐢𝐞𝐫𝐬' 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐞 Leading shipping company Maersk has temporarily suspended its Djibouti service to ensure the safety of its vessels amidst the ongoing crisis. 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐬𝐡𝐢𝐩𝐩𝐢𝐧𝐠 As the Red Sea crisis continues, it’s now estimated for a vessel to take 2-4 weeks (round trip) depending on the destination. 𝐄𝐪𝐮𝐢𝐩𝐦𝐞𝐧𝐭 𝐚𝐧𝐝 𝐬𝐩𝐚𝐜𝐞 Predicted container shortages are now slowly becoming a reality. Concerns are growing about potential equipment shortages at North China feeder ports. If containers are not returned to Asia in time for ships departing from Chinese ports after February 17, the situation may worsen. 𝐑𝐚𝐭𝐞𝐬 Long-term rate negotiations remain challenging for carriers due to the combination of the ongoing Red Sea crisis and the approaching Chinese New Year. However, there is a glimmer of hope post-February 17, as carriers may become more receptive to discussions on lower long-term rates. 𝐖𝐡𝐞𝐧 𝐰𝐢𝐥𝐥 𝐢𝐭 𝐛𝐞 𝐬𝐚𝐟𝐞 𝐭𝐨 𝐩𝐚𝐬𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐡𝐞 𝐬𝐭𝐫𝐚𝐢𝐭 𝐚𝐠𝐚𝐢𝐧? In contrast to the 2021 Suez Canal crisis, where resolution was clear-cut, the Red Sea situation remains uncertain. Since mid-December, when major container lines began avoiding Africa, there have been periods with a five-day gap between attacks, followed by intensified attacks. In the days ahead, the shipping industry, governments, and international groups will need to keep a close watch and adapt quickly to any new challenges. 👇 The image below displays all vessels carrying shipments from our customers, currently en route from Asia or the Pacific to Europe. The vessels present in the Suez Canal are CMA CGM Jean Mermoz and Pegasus. #redsea #shipping #logistics #shypple #digitalfutureproof
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39 Days since the Red Sea reroute started 𝐑𝐞𝐜𝐞𝐧𝐭 𝐞𝐯𝐞𝐧𝐭𝐬 The Red Sea crisis persists with repeated vessel attacks. Just five days ago, two anti-ship missiles were launched at the chemical tanker "Chem Ranger," but the vessel remained unharmed. The situation remains tense and concerning. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐞 In a coordinated effort, the United States and the United Kingdom took action on January 11, 2024, launching air and naval strikes on Houthi sites in Yemen in response to the relentless attacks on Red Sea shipping. The US has subsequently conducted more additional strikes against the group, demonstrating a united front to address the crisis. 𝐂𝐚𝐫𝐫𝐢𝐞𝐫𝐬' 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐞 Leading shipping company Maersk has temporarily suspended its Djibouti service to ensure the safety of its vessels amidst the ongoing crisis. 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐬𝐡𝐢𝐩𝐩𝐢𝐧𝐠 As the Red Sea crisis continues, it’s now estimated for a vessel to take 2-4 weeks (round trip) depending on the destination. 𝐄𝐪𝐮𝐢𝐩𝐦𝐞𝐧𝐭 𝐚𝐧𝐝 𝐬𝐩𝐚𝐜𝐞 Predicted container shortages are now slowly becoming a reality. Concerns are growing about potential equipment shortages at North China feeder ports. If containers are not returned to Asia in time for ships departing from Chinese ports after February 17, the situation may worsen. 𝐑𝐚𝐭𝐞𝐬 Long-term rate negotiations remain challenging for carriers due to the combination of the ongoing Red Sea crisis and the approaching Chinese New Year. However, there is a glimmer of hope post-February 17, as carriers may become more receptive to discussions on lower long-term rates. 𝐖𝐡𝐞𝐧 𝐰𝐢𝐥𝐥 𝐢𝐭 𝐛𝐞 𝐬𝐚𝐟𝐞 𝐭𝐨 𝐩𝐚𝐬𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐡𝐞 𝐬𝐭𝐫𝐚𝐢𝐭 𝐚𝐠𝐚𝐢𝐧? In contrast to the 2021 Suez Canal crisis, where resolution was clear-cut, the Red Sea situation remains uncertain. Since mid-December, when major container lines began avoiding Africa, there have been periods with a five-day gap between attacks, followed by intensified attacks. In the days ahead, the shipping industry, governments, and international groups will need to keep a close watch and adapt quickly to any new challenges. 👇 The image below displays all vessels carrying shipments from our customers, currently en route from Asia or the Pacific to Europe. The vessels present in the Suez Canal are CMA CGM Jean Mermoz and Pegasus. #redsea #shipping #logistics
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Importers face a significant surge in ocean-shipping rates and delays as carriers divert ships from the Red Sea to avoid Houthi rebel attacks. The average worldwide costs to ship 40-foot containers have nearly doubled since late November, leading to rising prices, extra fees, and longer voyages around the Horn of Africa. The increase is attributed to drone and missile attacks by Houthi rebels in Yemen, with some companies questioning whether the proposed charges reflect actual added costs or are attempts to offset softer rates in other lanes. Discover how Infor can enhance your supply chain capabilities: https://lnkd.in/ghMnHqhh .
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We’re constantly monitoring shipping events and recently there’s been talk of shipping costs between Asia and Europe rising. This is due to the impact of some westbound voyages being paused and others being diverted around Africa to avoid increasing attacks by Yemen-based Houthi rebels on merchant shipping approaching the Suez Canal. According to recent media reports, the escalating security crisis in the Red Sea region has led some ocean carriers to re-route ships from Asia to Europe via the Cape of Good Hope, avoiding the canal, which will add at least another 10 days to voyage times. The report predicts several weeks, if not months, of supply chain disruption, with ships and containers in the wrong places in the build-up to Chinese New Year, which starts on 10 February. If your business relies on these routes, please get in touch as a matter of urgency to ensure your goods are in the right place, at the right time. https://lnkd.in/e362Frjb
US and UK navies repel largest Houthi attack on Red Sea shipping
bbc.co.uk
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Importers face a significant surge in ocean-shipping rates and delays as carriers divert ships from the Red Sea to avoid Houthi rebel attacks. The average worldwide costs to ship 40-foot containers have nearly doubled since late November, leading to rising prices, extra fees, and longer voyages around the Horn of Africa. The increase is attributed to drone and missile attacks by Houthi rebels in Yemen, with some companies questioning whether the proposed charges reflect actual added costs or are attempts to offset softer rates in other lanes. Discover how Infor can enhance your supply chain capabilities: https://lnkd.in/dv4fRxz4 .
Importers Face Surging Shipping Costs, Delays as Red Sea Diversions Pile Up
wsj.com
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The deteriorating security situation in the Middle East around the war in Gaza saw international shipping coming under fire in the Red Sea over the weekend, with an OOCL container ship heading north to the Mediterranean one of three vessels attacked. The recent escalation of violence has led Hapag-Lloyd to join Zim Integrated Shipping Services in imposing a war risk surcharge on several trade routes passing through the Red Sea and eastern Mediterranean. Number 9, a 4,250-TEU vessel managed by Bernhard Schulte Shipmanagement (BSM) and operated by OOCL, was attacked by a missile on Sunday. The vessel flies the Panamanian flag. The US Central Command, which oversees the Red Sea and Sea of Aden, said in a statement Sunday that the missile came from areas controlled by the Houthi rebels in Yemen. The USS Carney, a destroyer deployed to protect merchant vessels, responded to distress signals from Number 9 and two bulk carriers attacked in the same area, shooting down two drones during its intervention. The Suez Canal is a vital passage for trade routes connecting Asia with Europe and linking Southeast Asia and India with the US East and Gulf coasts. As merchant vessels face direct threats, other carriers are likely to follow Hapag-Lloyd and Zim with their own war risk surcharges. From Jan. 1, 2024, Hapag-Lloyd will levy surcharges on shipments to and from Israel, adding $40 to all imports and exports from the Mediterranean and North Europe, and $80 per TEU to all other origins and destinations. On top of the surcharges, carriers are also diverting ships from the Red Sea to avoid attacks. Zim warned that longer transit times on the Asia-Mediterranean services could be expected with vessels having to deviate from scheduled routes on short notice. Maersk last week rerouted the container ship Lisa, coming from India to Salalah in Oman where all cargo was discharged. The ship was redeployed to Asia. The Maersk Pangani, coming from Cape Town, was diverted to Mundra in India and will call at Nhava Sheeva before sailing to West Africa. #suezcanal #redsea #containershipping #carriers #surcharge #internationalshipping #transit #scheduledroutes #vessels #shipsandshipping
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