The epidemic has disrupted supply chains, and the lack of labor at ports and terminals has made air freight a more reliable method of freight transportation.
Shipping giant companies scramble to buy freighters and find airline partners to meet customer demand.
The Wall Street Journal reported that the three heroes of global container shipping: Denmark’s AP Moeller-Maersk, France’s CMA CGM, and Switzerland’s Mediterranean Shipping Co. (MSC) have avoided using expensive air freight in the past.
But the global supply chain has been blocked for many years, forcing many customers to switch to higher-priced but more reliable air freight, prompting shipping companies to scramble to get air freight.
“For some key customers, air freight is a necessity,” said Michel Pozas Lucic, global head of Maersk’s airfreight division.
Auto parts, apparel, and technology products used to rely on sea transportation. Now they are worried about the port being blocked, and they are also afraid of missing the launch of new products, so they have switched to air transportation.
Abbie Durkin, owner of Palmer & Purchase, a womenswear boutique in New York, said that shipping is not the only option. They use planes to deliver their entire winter clothing line to ensure products arrive before Christmas.
Last year, Maersk acquired German air freight carrier Senator International, which doubled its air freight volume in one go; the company also purchased new aircraft for its air freight division.
Earlier this year, Maersk rival CMA CGM and Air France-KLM signed an agreement to share cargo space.
MSC joined Deutsche Lufthansa to bid for Italian airline ITA Airways, but was unable to win the bid.
According to the International Air Transport Association (IATA), airfreight industry revenue will grow 21% to $289 billion in 2021, up from $238 billion in 2020 and $264 billion in 2019.
IATA forecasts that global air revenue will continue to grow by 4.4% this year. From January to April this year, the air freight rate increased by nearly 200% annually.
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