Air freight rescues supply chains

According to the last report published by the International Air Transport Association (IATA), demand for cargo transportation by air provided strong support for the pandemic-strained aviation industry last year. In the first half of 2021, the global air cargo market reported year-on-year growth of 8%, higher than in any other year since 2017. 

In the Western European road transportation market, the first effects of the European Commission’s recently introduced Mobility Package are already noticeable. There is a significant shortage of available trucks, especially from Polish, Czech, and Baltic carriers. Vehicles are not allowed to run as many cabotage trips as before, and recent spikes in fuel prices are reflected in road freight rates that are fluctuating by several percent every day.

“Rail transport to and from Europe can also be problematic. Customers are afraid that their goods may get stuck at the border. We recommend air transport as an alternative solution that can help optimize inventory costs and cut delivery times. As an IATA member, AsstrA Italia guarantees the high quality of our services,” highlights Luba Zakharava, AsstrA Italia Branch Manager.

“Air freight rates are relatively high but still attractive considering the risk of border downtime for shipments by road or rail. In December 2021, air cargo rates were already 150% higher than in December 2019, i.e. before the onset of the pandemic. Today they are even higher as multiple flight routes have been lengthened to avoid closed airspace. However, many of our customers still prefer to pay more and receive shipments on a predictable schedule vs paying less and being unsure when they will arrive,” says Alan Terzi, AsstrA Italia Specialist. “Generally, we have good flexibility when sending shipments by air. There are many small airlines you can find cargo space with.  I believe there is a chance that supply and demand will even out soon and prices will return to former levels,” adds Alan Terzi.