As the Red Sea crisis continues, global logistics heavyweight Bolloré Logistics anticipates a surge in air freight demand, akin to the pandemic-induced boom. The French firm asserts that extended ocean transit times are straining inventories, immediately impacting air freight capacities and potentially triggering significant price hikes on major trades.
With a presence in 146 countries, Bolloré Logistics provides multimodal transport, customs compliance, logistics, global supply chain, and industrial project services. The company predicts an increase in airfreight capacity from mid-January to early February, primarily originating from China.
The air cargo market experienced a meteoric rise during the pandemic as consumers increasingly turned to online shopping for high-value goods typically shipped by air.
AP Møller-Maersk's CEO, Vincent Clerc, echoes the concern, warning that the Red Sea route may not normalize for months, potentially fueling global inflation. Maersk, responsible for a fifth of all ocean freight, plans to divert ships from the Red Sea around Africa indefinitely. The Red Sea route is a vital link between Asia and Europe, with approximately 15% of global shipping traffic passing through, en route to the Suez Canal.
Source: supplychaindigital.com