Retailers and manufacturers are increasingly seeking to fly their goods as attacks on vessels in the Red Sea raise ocean freight costs, prolong transport delays and force companies to find alternative routes.
Air cargo volumes from Vietnam to Europe – a major trade route for clothing exports – rose 62 per cent in the week ending January 14 and air freight rates increased by 10 per cent compared to the previous week, freight platform Xeneta said in its latest report.
“This is the first signal in Xeneta data that the Red Sea crisis is impacting air freight,” Niall van de Wouw, Xeneta's chief air freight officer, said.
“This is typically a quieter time of year for air freight so to see increases of this magnitude with higher volumes than at any point in 2023, is significant.”
The air freight volume on the route was 6 per cent higher than last year's peak week in October and a 16 per cent increase on the volumes recorded in the same week 12 months ago.
“In the next two weeks, we should know for sure if this represents a genuine and significant shift from ocean to air freight due to the Red Sea crisis,” Mr Wouw said.
The Red Sea is linked to the Mediterranean by the Suez Canal, making it the shortest shipping route between Europe and Asia.
The canal is a major artery for the flow of goods, with about 12 per cent of the world's shipping traffic passing through it.
Shipping routes in the Red Sea were disrupted after missile attacks by Houthi rebels, who say they are acting in solidarity with Palestinians, hampering global trade as Israel's war in Gaza continues.
US and UK military forces have launched a series of strikes against rebel sites in Yemen, with the Red Sea attacks prompting many companies to take a long and expensive detour around the Cape of Good Hope instead.
Companies are increasingly making inquiries to take their business to the skies to protect supply chains and keep their products on shelves, amid the Red Sea shipping crisis that has lasted more than two months, analysts say.
“There are currently many discussions between exporters and importers and providers of air freight services, but a switch has not happened yet,” Philip Damas, managing director and head of Drewry supply chain advisers, told The National.
“Some companies are already running out of inventory usually carried by ships and will switch volumes to air freight in the next two to three weeks.”
Global air cargo is the usual “plan B” for companies experiencing extensive delays in ocean freight, he added.
Higher air cargo rates
While air freight rates have remained relatively stable during the off-peak season that has coincided with the shipping crisis, air rates on a route between China and Northern Europe increased 91 per cent week-on-week to $3.55 per kilogram, according to data from freight booker Freightos on January 16.
Some shipments will shift from ocean to air as demand is increasing with the Chinese lunar new year under three weeks away on February 10 and shippers have started to face some shortages in empty containers, it said.
Analysts warn that the diversion of container vessels away from the risk of attacks in the Red Sea could push up air freight costs.
“When it happens, a diversion from ocean freight to air freight could cause a large increase in air freight rates,” Mr Damas said.
'Limited scope' of air cargo
Still, air freight remains more expensive than sea freight when transporting certain types of products and opting for air freight instead of shipping would be feasible only in some cases, Christian Roeloffs, co-founder and chief executive of Container xChange, told The National.
“While air freight is an option, it typically makes sense in very rare circumstances for sea-bound freight. For instance, when critical parts are urgently required for just-in-time production and any delay would halt the manufacturing process,” he said.
“In most cases, containerised cargo tends to have a less favourable value-to-weight/volume ratio, rendering air freight economically impractical due to its higher cost.”
A company's decision to opt for air freight will be determined by the urgency of the situation, where time is crucial and the value of the cargo justifies the higher cost, Mr Roeloffs added.
Transporting goods by air also comes with a high environmental cost, Daniel Harlid, vice president and senior credit officer at Moody’s, told The National.
“Generally, air freight is a lot more expensive and has limited carrying capacity versus container shipping,” he said.
A typical container vessel carries between 14,000 to 24,000 containers.
“So even though some companies may temporarily shift some of their shipments to air, this will still be very limited in scope.
“Not to be forgotten is also the carbon footprint which increases quite significantly if using air freight instead of sea freight.’’
A sharp rise in air cargo demand could be a boost for the aviation industry, which is experiencing normalising growth in cargo volumes and rates following the peaks recorded during the Covid-19 pandemic.
Etihad Airways' cargo arm has recorded an increase in inquiries from freight forwarders, manufacturers and retailers, mainly for routes out of Asia, including China and India, to destinations across its global network, Leonard Rodrigues, acting managing director of Etihad Cargo, told The National.
“Where we are seeing increased demand for goods that are usually associated with ocean shipping is in the e-commerce sector, where faster transit times than sea freight are required,” he said citing goods such as garments and consumer electronics.
“Therefore, the increase in demand for air cargo is more about e-commerce buying patterns and less about rising shipping rates and disruptions in the supply chain.”
Etihad Cargo is monitoring the relationship between sea and air freight costs, finding that the influence of ocean shipping rates on air cargo has been relatively small so far, Mr Rodrigues added.
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
Australia World Cup squad
Aaron Finch (capt), Usman Khawaja, David Warner, Steve Smith, Shaun Marsh, Glenn Maxwell, Marcus Stoinis, Alex Carey, Pat Cummins, Mitchell Starc, Jhye Richardson, Nathan Coulter-Nile, Jason Behrendorff, Nathan Lyon, Adam Zampa
TALE OF THE TAPE
Manny Pacquiao
Record: 59-6-2 (38 KOs)
Age: 38
Weight: 146lbs
Height: 166cm
Reach: 170cm
Jeff Horn
Record: 16-0-1 (11 KOs)
Age: 29
Weight: 146.2lbs
Height: 175cm
Reach: 173cm
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Quick%20facts
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Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Bawaal%20
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
UAE currency: the story behind the money in your pockets
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The Outsider
Stephen King, Penguin
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.9-litre, V6 twin-turbo
Transmission: seven-speed PDK dual clutch automatic
Power: 375bhp
Torque: 520Nm
Price: Dh332,800
On sale: now
The specs: 2018 Ford Mustang GT
Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
Power: 460hp @ 7,000rpm
Torque: 569Nm @ 4,600rpm
Fuel economy, combined: 10.3L / 100km
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
The years Ramadan fell in May
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
ADCC AFC Women’s Champions League Group A fixtures
October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA
The bio:
Favourite film:
Declan: It was The Commitments but now it’s Bohemian Rhapsody.
Heidi: The Long Kiss Goodnight.
Favourite holiday destination:
Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.
Heidi: Australia but my dream destination would be to go to Cuba.
Favourite pastime:
Declan: I love brunching and socializing. Just basically having the craic.
Heidi: Paddleboarding and swimming.
Personal motto:
Declan: Take chances.
Heidi: Live, love, laugh and have no regrets.
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Company%20profile
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
The specs
Engine: 3.8-litre twin-turbo V8
Power: 611bhp
Torque: 620Nm
Transmission: seven-speed automatic
Price: upon application
On sale: now
UAE currency: the story behind the money in your pockets
The biog
Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
BUNDESLIGA FIXTURES
Friday (all kick-offs UAE time)
Hertha Berlin v Union Berlin (10.30pm)
Saturday
Freiburg v Werder Bremen (5.30pm)
Paderborn v Hoffenheim (5.30pm)
Wolfsburg v Borussia Dortmund (5.30pm)
Borussia Monchengladbach v Bayer Leverkusen (5.30pm)
Bayern Munich v Eintracht Frankfurt (5.30pm)
Sunday
Schalke v Augsburg (3.30pm)
Mainz v RB Leipzig (5.30pm)
Cologne v Fortuna Dusseldorf (8pm)
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
