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The records keep tumbling! |
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Dear customer, If anyone had a small hope that the Christmas holidays would bring some relieve to an overheated global transportation and logistics sector these hopes have quickly faded away. For that reason, we will continue to keep you updated and encourage you to keep a close dialogue with us to find the needed solution. Airfreight has to a large extent entered a new normal in comparison with the situation in most of 2020. Rate levels will remain elevated from a historic perspective as belly-hold capacity is only increasing slowly. This situation is only expected to change when we enter the second half of 2021 where passenger flights are expected to resume to a significant higher level. Traditionally the coming period up to Chinese New Year period implies a strong pressure on capacity to ensure all volumes are lifted ahead of factories in China closing down. This is also expected this year, we do however foresee a stable operation where solutions can be found. The effects of the COVID-19 vaccine (COVAX) distribution have not hit the airline markets yet, with many of the vaccines being produced in close proximity to distribution points. This is however expected to change once COVAX distribution goes truly global and multiple vaccines are in full use. Ocean freight remains dire and borderline chaotic. Operational disruptions are apparent across all geographies with no immediate expectation that the situation will improve. What now remains to be seen is the mid and long-term effects, in particular when it comes to the trading relationship between carriers, customers and forwarders. We foresee an increase in interest, and demand for long-term agreements with firm and secure mutual commitment in place with a lesser degree off speculation. The current level of supply chain disruption is unsustainable for all parties and this will drive a different behaviour in the years to come. For rail freight the outlook mirrors ocean freight. |