customs brokerage, freight forwarding and truck transportation

Peak Season Capacity Crunch

: General

Cargo Capacity Crunch Could Be a Threat for Peak Season 2017-08-31

The air cargo industry could face a capacity crunch in the upcoming peak season, with capacity bottlenecks expected on the Asia-Europe trade and transatlantic trade during the peak.

Capacity is already constrained on the transatlantic, while Asia-Europe faces an earlier-than-expected peak.

Airfreight companies have reduced overcapacity and, at the same time, airfreight volumes are increasing due to a lack of sea freight capacity. Existing bookings are being canceled by air freight companies. Processing bottlenecks at airlines and trading partners could further increase shipment times.

It's recommended that air freight shipments be booked as soon as possible.

The airfreight market, especially from Asia to North America, is the strongest it has been for the past six to seven years, driven by e-commerce, new product launches and quarter-end project shipments tying up capacity and the residual effect of the ocean alliance shift in April.

In related news, exporters in Bangladesh are facing serious challenges in making shipments from the Hazrat Shahjalal International Airport. Because of the ban on direct cargo flights from Bangladesh to the European Union from June 1, consignments from Dhaka are being rescreened at a third airport.

Etihad Airways has reduced the number of its cargo flights in a week from six to three, and Oman Air, which used to transport 120 tonnes of cargoes by way of three flights in a week, has stopped carrying cargo altogether.

As a result, at least 300 tonnes of cargoes, especially apparel items, get left behind at the airport cargo village every day, reported the Daily Star .

The cargo congestion has magnified, as many exporters are now trying to send their consignments through air shipments after failing to send them through the Chittagong port, which is in a similar situation because of the breakdown of two of its gantry cranes.

The EU, where more than 54 percent of Bangladesh's exports are headed, has declared the Hazrat Shahjalal International Airport a 'red zone' due to insufficient safety and security measures, following the lead of the UK, Australia and Germany.

Source: CIFFA



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