Events unfolding in the Middle East over the weekend are already having a significant impact on Air Cargo shipments. The closures/restrictions over Middle Eastern airspaces have resulted in major operators choosing to re-route and avoid the region. Major airports such as Doha and Dubai remain closed.
It’s reported that global cargo capacity has reduced by around 18% and backlogs are already accruing. Longer routes are now being chosen, but will require additional fuel and therefore reduce the amount of cargo an aircraft can carry so as not to exceed weight limits. Some airlines are expected to add refueling stops, increasing transit time from origin to final destination.
Demand for air shipment from Asia remains high as China returns from Spring Festival closures. Reduced air capacity and longer flight paths are already impacting costs significantly, whilst quote validity periods are likely to remain short for the foreseeable future.
Impact on Shipping
Any of the container shipping lines that had returned to Red Sea routes are now diverting shipping away from the Strait of Hormuz, diverting back around the Cape of Good Hope. For Gelec customers, that will not have an impact, as the majority of container shipping is still sailing south before returning up the western coast of Africa.
What we recommend
Gelec is encouraging customers to work to quoted lead times wherever possible to mitigate the need for air shipment. It is likely that air shipments could take longer than the typical 10-14 days until the situation improves.
Please understand that this is an evolving situation and we will endeavour to provide regular updates.
Please click here to email our Sales Team or call +44 20 8855 0991 if you have any questions or concerns or require updated pricing ahead of releasing new order coverage. We will, of course, keep you updated as things change.
