Third-party logistics provider (3PL) CH Robinson has observed an increase of +2.7% in air freight capacity at the same time as demand decreased by 4.7%.
Vice president for Oceania at CH Robinson Andrew Coldrey said as air freight capacity becomes more available at lower costs, more companies are taking advantage of the situation.
“Undoubtedly the current oversupply of air freight capacity presents a great opportunity for importers and exporters to consider air freight as a viable alternative, reducing costs and increasing time efficiencies in supply chain management.
“There’s never been a better time to compare different transport modalities and to perhaps consider a hybrid solution where a 3PL can review and revise logistics for the most efficient and cost-effective results.
“Forecasts show shipping freight prices may be impacted with the introduction of IMO 2020, so now is the best time for companies to re-evaluate how air freight can work in their supply chain and set up contracts that can leave them far ahead of the competition when the market shifts again.
“We appreciate for many firms this will require a different approach and we are more than happy to help people take advantage of this unique situation,” said Mr Coldrey.