MORE manufacturers are seeking to fly their products in the next few weeks as attacks on Red Sea shipping force them to find alternate routes, Reuters reports.
Logistics firms say this is a potential boon for a sector dealing with muted post-pandemic demand and overcapacity.
But more than two months of attacks by Yemen's Houthi forces on ships in the region have affected companies and alarmed major powers in an escalation of Israel's war with Palestinian Hamas militants in Gaza.
While air freight prices have so far remained relatively stable as the shipping crisis coincides with a seasonal lull in demand, data from freight booker Freightos showed rates on a China-to-Europe route had surged 91 per cent week-on-week.
Price reporting agency TAC Index also said there were signs of an uptick in China-to-Europe air freight rates this week.
"We are talking to many customers already about increased air capacity," said Yngve Ruud, head of Air Logistics at global logistics firm Kuhne+Nagel.
"We have probably 20-30 per cent more discussions and proposals than usual in January."
But air freight is costly compared to sea freight, and not competitive for bulky, low-margin items. Such constraints have limited air cargo to less than one per cent of global trade by volume, according to airline industry association IATA.
Source: shippingazette