Greater demand for air freight is pushing up volumes and rates as companies pay a premium to fly in supplies from Asia, particularly to drive the growth of data-center construction.
Instead of using slower sea freight alternatives, bulky server racks and semiconductors needed for artificial intelligence are increasingly taking up space in cargo planes. According to figures from the International Air Transport Association, air-cargo volumes from Asia to North America rose nearly 20% in May from the previous year, with global volumes increasing 6% overall.
As a result of increasing demand and higher jet-fuel prices, air freight rates are up during what is normally a slow season. The average spot rate for air-cargo transport from the Asia-Pacific region to North America climbed 36% year-over-year in June, according to logistics consultancy Xeneta. “We continue to see elevated rates out of Asia driven by sustained demand for technology-related shipments,” said Amanda Rasmussen, chief commercial officer for DHL Global Forwarding.
IAM Member Impact: International moving companies booking space for private and corporate household goods shipments should expect tighter capacity and higher quotes on both air and ocean lanes well into peak season.
Source: Wall Street Journal