Air Freight Update

6th August, 2021

Airfreight rates are coming under increased pressure globally as a result of several contributing factors including:

• a 50% reduction of Australian residents being permitted to arrive back in AU,
• ongoing sea freight delays, resulting in importers needing to fly cargo to replenish stock urgently and
• manufacturing delays causing the late supply of goods, which otherwise would have been sent via ocean freight.

These issues will be impacted further as we head towards the traditional peak season. A brief on the main trade lanes is noted below. Please continue to ensure as early notice as possible for your air freight orders to our customer service team.

USA
Rates ex the USA to AU ballooned at the start of the pandemic. However the rates dropped down to a more sustainable level quite quickly in most airports and held steady up until recently. We are seeing air freight rate increasing, with Qantas increasing rates by 30%. The most stressed airport of departure is Los Angeles with delays up to two weeks for some bookings and pricing almost doubling. Chicago consolidations are operating much better than LAX and where appropriate we are rerouting cargo to this gateway. Our CS team is having daily dialogue with our USA freight partner to ensure the most optimum way to keep your cargo moving.

EU
Whilst rates spiked significantly at the beginning of the pandemic, they did settle down after a period and had remained consistent. However we are starting to see some rate increases ex EU, but also some delays in transit.

China
Rates are continuing to be consistent ex China to AU, albeit mainly routing via South East Asia. These will need to be monitored as the traditional peak season will likely have an impact on them.

South East Asia
Similar to China rates are still being held however we will monitor and keep you posted.

New Zealand
Space remains very tight to and from NZ. The travel bubble has been put on ice by the NZ Government, so we are principally reliant on freighter services again. Please allow some extra lead time for your NZ air bookings.

Please don’t hesitate to contact us at sales@sccargo.com.au for any assistance.