Air, Freight News

Airfreight ‘crisis’ threatens global car makers, says Evolution Time Critical

[ November 30, 2017   //   ]

A shortage of air cargo space  could threaten global  vehicle production, says emergency logistics specialist, Evolution Time Critical (ETC).

There have been problems in booking airfreight, particularly on Europe to North America routes, along with issues on the Asia to North America and Europe, leading to the seasonal peak in demand for air cargo space far exceeding normal levels, says ETC managing director, Brad Brennan.

Booming e-commerce has added to the problems, he believes.

“Air freight prices have more than doubled in the past two months, just as vehicle manufacturers are ramping up for 2018 models,” he explained. “The shortfall in air freight capacity from Europe into North America, in particular, could have connotations for ongoing vehicle production without steadfast contingencies.”

And while many companies tend to book airfreight at the last minute, those that do are struggling to find space, he says.

Dedicated emergency logistics partners can solve some of the problems, Brennan argues, for example by, co-loading, shipments, breaking them down into smaller loads on several airlines or flying to more remote airports.