Airfreight soars above the congested ocean freight transport system
Drewry Airfreight Insight, a new online airfreight market intelligence service launched today by Drewry’s Supply Chain Advisory division, confirms airfreight’s growing popularity among international shippers as cost and congestion issues continue to impede ocean transport.
2024 has been a year of continued supply chain disruption for ocean freight shippers, forcing many to think and act creatively to alleviate the pressures on their global transport networks. With unreliable transit times and myriad problems in ocean transport, airfreight has stepped in and aided procurement teams in a time of need.
As congestion has plagued the ocean freight sector, Drewry has seen double-digit growth in airfreight volumes, particularly out of Asia. Still, freighter capacity has remained buoyant enough to sustain this growth, and although rates have gone up, they have not matched the steep increases in ocean spot rates. Despite the demand boom in airfreight between Dec-23 and Sep-24, the cost ratio between airfreight and ocean freight spot rates has narrowed from 25.9x to 5.6x (see below).
Drewry Airfreight vs. Maritime Price Multiplier
Source: Drewry Airfreight Insight, Drewry Maritime Research, IATA
“Procurement teams within global shippers/BCOs and forwarders need access to up-to-date market insights across both ocean and air sectors,” said Chantal McRoberts, director and head of advisory at Drewry Supply Chain Advisors.“This new monthly service provides the timely insights stakeholders need to determine the ‘best fit’ transport mode for their business.”
The service will focus on the key drivers of the airfreight market (supply, demand, and load factors) on all key routes and key regional indices, enhanced by spot rate benchmarks against 127 of the most popular air routes.
Airfreight Insight is accessed via Drewry’s digital Container Freight Portal, which also provides subscribers with wrap-around content such as Drewry’s World Container Index, Intra Asia Rate Index, Ocean Contract Rate Index, and Port Throughput Index, further enhancing the ocean freight market intelligence offered.
