AIR cargo could benefit from a reduction in ocean shipping reliability
next year as box lines contend with antitrust rule changes.
Speaking at the TIACA executive summit, Xeneta chief airfreight officer
Niall van de Wouw ranked the criteria shippers considered when selecting
between air and ocean.
He said that reliability was by far the most important ahead of environmental impact and price, reports London's Air Cargo News.
Mr Van de Wouw said that airfreight rates rise - indicating higher demand - when ocean schedule reliability decreases.
He pointed out that airfreight rates reached a peak in April last year when ocean reliability was at its lowest.
Looking at the current market, Mr Van de Wouw said that the low rates in
ocean sailing meant shipping lines were missing out sailings to balance
supply and demand.
"Interestingly enough, we have seen [reliability] go down a little bit,"
he said. "They say there is a bloodbath in rates on the ocean side
which means more blank sailings, they cancel the vessels which reduces
the reliability which makes shippers a little bit worried."
And next year there could be further disruption after the European
Commission in October decided not to extend container shipping's block
exemption from certain competition rules.
The current block exemption runs until April 25, but after this date
container carriers will be less able to cooperate on operations.
"[Block exemption] will no longer be extended so there is a lot of
concern about what the ocean freight market will look like from a supply
point of view from April next year," said Van de Wouw.
"If that were to result in more competition, less consolidation, it
could well be that certain niche markets become underserved, become less
reliable, and therefore potentially supportive of airfreight demand."
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