MBS Logistics’ Post

E-commerce growth is reshaping air cargo logistics, driving unprecedented demand and causing significant disruptions. This surge is impacting traditional sectors, escalating shipping costs, and creating capacity challenges. As e-commerce giants secure space early, the competition for air freight capacity intensifies. Watch this space to stay informed on the evolving trends and market dynamics as the air freight industry adapts to these rapid changes. #ecommerce #cargo #logistics #aircargo #airfreight #logistics #logisticsindustry #cargologistics #ecommercegrowth #jeenalogistics #logisticsleader #logisticspartner

For the second post in our e-commerce series, we’ll consider how OCEAN cargo is impacting AIR cargo. Is the current state of ocean cargo affecting shipping rates and airfreight volumes and if so, how? Potential Drivers: 📈Peak Volume - We’re seeing a spike as peak season holiday inventory shipping begins. It typically starts in July and continues through August. This is impacting all segments of the delivery industry. 📦 Capacity - It is hard to find available space on ships due to volume spikes as well as congestion and delays at ports. Driving more shippers to use air cargo instead. 💸 Cost - Current ocean cargo rates edge near pandemic level and have nearly doubled since January due to increased transit times, demand, and higher costs for the shipper. As a result, shippers are considering alternatives. Learn more about rising costs at https://zurl.co/hXpb Check out this article from LoadStar for more perspective - https://zurl.co/dj3h. Stay tuned on our channels throughout the month as we examine the factors facilitating the rise in e-commerce and airfreight volumes. #ecommerce #oceancargo #AirCargoConference #aircargo #airfreight #transportation #airforwarders #airforwardersassociation #AEMCA #ACINA #groundtransportation #motorcarriers #carriers #logistics #supplychain #conferences #networking #innovation

✈ E-Commerce has been a large driver of the increase in air freight we have been seeing (1/5 attributed to E-Commerce). There are no signs of this slowing down anytime soon. 🛳 Ocean container volumes are up from last year, but the supply of vessels and containers are stretched thin. The price of ocean freight jumped fairly quickly and has narrowed the gap between ocean and air freight rates. This has made air freight an attractive option for many. 🔑 KCH is TSA certified and can assist with your air freight needs. Let's chat about how we can help! 📲 (423) 443-0845 📩 Mherring@kchtrans.com #AirFreight #KCHtransportation #SupplyChain #Logistics #TSAcertified

The #airfreight market has continued its ascent after months of price decline due to high e-commerce demand and global uncertainty. Check out this week’s #SupplyChainReactions to learn more about the latest in the #AirCargo industry. #SCR #SupplyChain #FreightForwarding #Shapiro

https://lnkd.in/gG5qt4Jm March's air cargo demand surged 11% YOY, marking the third consecutive month of growth, driven by conflicts in the Red Sea and a spike in e-commerce. Shippers are increasingly shifting from ocean to air to navigate disruptions, a trend underscored by Xeneta's recent insights. As the logistics landscape adapts, the resilience and agility of supply chains are put to the test. With an eye towards the future, how can businesses stay ahead in this dynamic environment? #AirCargo #SupplyChain #ECommerce #SCLT4380 Margaret A. Kidd, CMILT, CPE™ Gulshan Singh, PhD

As e-commerce surges in Asia and ongoing instability in the Red Sea continue, demand for air freight is on the rise. In an industry that’s defined by fluctuations and uncertainties, how can air carriers capitalize on these market opportunities that reinforces their operational stability while remaining agile and competitive? 👉 A link to the complete article here: https://lnkd.in/d7se-Tkr #airfreight #airfreightindustry #aircargo #aircarriers #data #supplychaindata #digitalization

UPS Q1 2024 results appear to confirm our analysis that e-commerce is no longer driving US domestic air cargo volumes. Next day and deferred air shipment have been declining since the second quarter of 2022, although package yields have been improving due to more business-to-business traffic in the mix. #ecommerce #airfreight #express #ups Trade Data Service

The method of transportation for e-commerce shipments into the US has changed fundamentally over the last six years. Air accounts for about 90% of overall shipments, with the remainder moving into the US by truck from Canada or Mexico. Back in 2019, postal accounted for about 40% of air shipments, but the majority today moves as general airfreight consolidations. The express share increased to 30-34% during the capacity constrained COVID years (2020 - 2022), but as rates eased back from their 2022 highs there have been more dedicated non-express company operated freighters moving traffic across the Pacific. #ecommerce #imports #deminimis #aircargo Trade Data Service

Robust Growth in Air Cargo in 2024, Yet Challenges Persist · Sustained Growth: Air cargo has achieved double-digit year-on-year growth for 13 consecutive months, fueled by the e-commerce boom and disruptions in ocean freight. · Uneven Benefits: Airlines have benefited from this trend, while freight forwarders have not fully capitalized on it due to variations in the structure of the e-commerce market. · No Significant Peak Seasons: This year, freight rate peaks have been less pronounced, improving the relationship dynamics between shippers and freight forwarders. · Future Challenges: Potential port strikes, tariff adjustments, and security risks could disrupt the market's supply and demand balance. · Dynamic Market Risks: A high proportion of short-term capacity procurement has made it difficult for freight forwarders to predict costs in the long term. #Airfreight #SupplyChain #Ecommerce #FreightRates #LogisticsChallenges #logisticsnetwork