The air freight market in the Asia-Pacific (APAC) region was subdued in January and will continue to be subdued in February, while the region’s ocean freight sector continues to struggle with the fallout from the ongoing Red Sea Crisis, according to a recent survey.
A recent report published February 12 from the logistics services company Dimerco, entitled “Asia Pacific Freight Report: January to February 2024 Review & Forecast,” showed that the air freight market in the APAC region exhibited subdued behavior due to the Chinese New Year, indicating a sluggish demand as well as a limited shift from ocean freight to air freight. Air cargo operations in the region are expected to return to normal after February 26 following a recent dip from the Chinese New Year.
Dimerco said that shippers should anticipate rates to increase for vessels going to the U.S. and Europe.
The survey also said that the APAC region should expect a surge in blank sailings from late January, reducing East-West capacity due to extended transit times from vessels traveling around the Cape of Good Hope due to the ongoing Red Sea Crisis. Asia-U.S. shippers will likely be hit with high surcharges until at least the end of the Lunar New Year rush as ocean carriers take more steps to avoid transit through the Suez Canal.
The APAC region should anticipate equipment shortages that will lead to more supply chain challenges as well as increased shipping rate fluctuations caused by carriers conducting more rate reviews.
Dimerco also suggested that ports on the West Coast of the U.S. could suffer from increased congestion. Shipments to the Ports of Los Angeles and Long Beach could grow by 3% by May 2024 and increase even further during the 2024 peak season if the Red Sea crisis persists.
