REDUCED inbound capacity at US ports owing to weak demand and low freight rates combined with a stronger export market driven by the weak US dollar and demand for raw material have left exporters scrambling for space on containerships, says New York's Swiss WorldCargo chief Jack Lampinski.
The result is increasing demand for airfreight in the US, according to Mr. Lampinski an American Shipper report.
Boxes to transport the cargo are also said to be scarce as many bulk commodities are being switched to containers as this mode of transport is cheaper than airfreight given the record high fuel prices. The other problem with transporting bulk cargo in containers is that the ships reach their weight limits before they reach their volume capacity.
Mr Lampinski, the firm's New York managing director, said two freight forwarders told him they are shifting to airfreight because ocean carriers can't execute on-time deliveries.
But Mr Lampinski also said rising fuel surcharges to meet rapidly rising in jet fuel prices will change the air cargo business model. "Cargo surcharges for international flights can be two to three times the transport rate, which isn't sustainable in the long run," he said. "Unless fuel goes down, something has to change."
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Source: schednet
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