Air Freight Update

3rd February, 2022

Air freight cargo capacity is going to continue to be very tight throughout 2022 and indications are that rates will remain on the high side. There was some hope towards the back end of 2021 that we would start to see an increase in capacity from more passenger planes in the sky but the Omicron variant has stifled many travel plans and caused many Governments to continue with border restrictions, whilst these restrictions remain in place travellers will continue to be hesitant with bookings.

Outside of the lack of passenger planes, other matters are having an affect on the lack of capacity including;

• Business travel is yet to gain traction on key trade lanes
• The Omicron variant is affecting staffing at all stake holders in the supply chain including ground handlers, pilots and truckers. Although, in many countries these workers are designated as essential when contracting covid or deemed a close contact they are not roles that can be performed from isolation at home
• Vaccines and rapid antigen tests will continue to occupy large volumes of air cargo capacity during 2022
• With sea freight delays continuing it is causing more companies to consider air freight options as a measure to ensure stock levels or for certainty that manufacturing plants and projects do not close down as a result of the sea freight delays.
• Many manufacturers are producing finished goods at slower rates, for the same reasons we are highlighting here, late manufacturing can also lead to an air freight requirement

For our wonderful customers at SCC our messaging remains the same;

• Schedule regular meetings with all involved in forecasting for your orders including your overseas suppliers as it very important to understand their constraints
• Allow a buffer in your lead times including manufacturing lead times
• Engage the SCC team at the earliest possible time of order placement
• Take advantage of our experienced staff to discuss your needs at anytime

For all involved in the global supply chain actively managing relationships is the key. At SCC we have invested heavily in all key stake holders so that we can successfully manage the movement of your important cargo.

As always with your overseas orders, please engage the SCC team sales@sccargo.com.au at the earliest possible time as we remain a key component of your supply chain.