Demand patterns in different modes of global transportation wax and wane on a periodic basis. Factors include freight capacity, competition, economics, geopolitical troubles, and extreme weather, often working in combination.
Currently, geopolitics are front and center. Yemen-based Houthi rebels are playing havoc with the critical Red Sea passage, handling 15% of the world’s ocean freight. While a military coalition led by the United States is combating rebel pirates challenging the shipping lane, major carriers aren’t waiting around for results. Many are temporarily diverting traffic around the Cape of Good Hope until the situation cools down.
Major cargo carrier lines have even taken to changing their automatic identification system (AIS) tracker to indicate they’re affiliated with China or Russia, or have no dealings with Israel, in an effort to ward off the Houthis.
This has pushed ocean freight rates up four or five times higher than before the Houthi attacks began in late November, with transits around the Cape taking 20% to 25% longer. Ocean container rates from Asia to North America are up 75% since December.
As Red Sea Conditions Deteriorate, Air Cargo Provides Vital Relief
All of this has opened the door for air freight as an alternative. Air freight services, usually a critical transportation mode for expedited shipments, are suddenly a vital lifeline for shippers who can’t afford to add two weeks of sailing days onto their schedule.
While there has yet to be a massive demand surge for air freight, carriers and forwarders are expecting a slow and steady increase that could go on for months.
In addition, ongoing drought conditions in the Panama Canal continue to hamper the flow of ocean freight through the critical waterway. Carriers are rerouting significant volumes from trans-Pacific to trans-Atlantic routes, and the Panama Canal railway is also seeing increased traffic.
Partnering with a 3PL for Worry-Free Air Freight
In the current unstable climate, shippers need to consider how they’ll increase air freight in the transportation mix. It makes sense to seek an experienced third-party logistics provider (3PL) to help manage all aspects of air cargo, from booking to delivery.
COGISTICS Transportation, a leading provider of transportation and logistics services domestically and internationally, provides shippers with top-flight air cargo services. We blend an expert team with technology and a leading carrier network to streamline your air cargo transportation.
Working with a highly qualified 3PL like COGISTICS Transportation provides peace of mind, knowing you have a dedicated partner managing your air cargo services. We achieve excellence and deliver consistent results through a commitment to listening, communicating, executing, and leveraging advanced technology, partnerships, and experience.
COGISTICS Transportation’s Air Freight Solutions
We specialize in air cargo services, ensuring prompt, secure delivery of your essential cargo. Here are some features and benefits:
Real-time tracking: You get tailored updates of every air freight shipment from request to delivery. Effective data management provides visibility into location, status, and estimated arrival times, so you can proactively address delays or issues.
24/7 operations center: Our dedicated team is always ready to meet your logistics needs, providing excellence around the clock.
Multi-mode coverage: COGISTICS Transportation offers services across a range of air freight modes, based on your particular needs:
- Air charter: exclusive use of an entire aircraft, typically for time-sensitive, oversized, or high-value cargo.
- On-Board Courier (OBC): accompanies the cargo on a commercial flight and handles customs clearance — again, for time-sensitive, high-value, or confidential cargo
- Next Flight Out (NFO): expedited delivery on the next available commercial flight. It is ideal for shipments needing rapid delivery but doesn’t require an entire aircraft.
- Express Air: prioritizes faster processing, handling, and transportation, with guaranteed delivery times.
- Standard Air: a cost-effective option with more flexible transit times for non-urgent cargo with predictable lead times.
COGISTICS Transportation is well-equipped to cater to your time-critical cargo needs with our communications network. We provide always-on expert access to help you quickly address any issues. Tracking and status updates are provided throughout the shipment journey. An easy-to-access dashboard offers granular information on every shipment, from order to delivery.
We’re also a member of the global logistics partnership network WCA, the world’s largest network of freight forwarders, with access to more than 6,800 offices in 191 countries worldwide. This includes seven general cargo networks and 14 specialty networks covering categories like pharmaceuticals, e-commerce, perishables, and dangerous goods.
The COGISTICS Transportation team verifies each shipment is tendered properly for air cargo, and that all necessary paperwork is completed. We present each service level option, including both faster and slower transit times, so you can make an informed decision. This includes transparency on potential pitfalls, such as mechanical issues, overbooking, and stormy weather, so an alternate plan can be developed.
With Disruption Expected to Continue in Ocean Freight, Keep Air Cargo in Play
Given ongoing uncertainty, shippers are weighing their options and seeking alternatives to keep freight moving. Often, this involves the expanded use of air freight.
COGISTICS Transportation is an excellent resource for shippers looking for a trusted partner who can deliver seamless, reliable air cargo services. Contact us to get started.
