Shippers are scrambling for air freight capacity amid tightening
restrictions in China and severe port congestion in Bangladesh – leading
to a backlog ahead of the peak season.
One source told The Loadstar the market could “collapse” if
the situation went unchanged, the next two weeks pivotal as the major
retailers find themselves “hoovering-up capacity” to get their
autumn/winter ranges to market, leaving smaller firms floundering.
“Inditex is chartering with Emirates frequently; it has captured more
than 70% of the space out of the Bangladesh market,” one forwarder told The Loadstar.
“I have also heard that Inditex has purchased 200 tonnes of capacity
from Qatar Airways out of Colombo, leaving Qatar-Bangladesh helpless to
support its many customers, despite the rates forwarders are prepared to
pay.”
Another forwarder added: “It isn’t just Emirates. It’s also Etihad,
Turkish and pretty much anyone they can get. Inditex has flexed its
muscles. The market is volcanic with fallout, and debris everywhere.”
Inditex, which owns high street retailers including Zara, had yet to respond to requests for comment.
The forwarder said he expected the market to “remain crazy” until at
least November, warning that with the backlog increasing “daily” and the
situation deteriorating, problems could multiply if carriers were
unable to get their passenger services “back into full swing”.
“But, having spoken to three or four airlines over the last few days,
there is no good news, with no plans to increase capacity in the face
of poor passenger demand,” the forwarder added.
“Nor are any airlines interested in operating more B747 or 777
flights from Hazrat Shahjalal International (DAC) because of the
operational challenges experienced there. They are focused on the
smaller P2C flights instead.”
For those lucky enough to secure charter capacity out of the two
pinch points – DAC and Shanghai – forwarders are claiming seven-day
waits to get goods on a plane.
This was confirmed by group operations director at Priority Freight
Andrew Austin, who said Covid-related airport restrictions requiring
staff to self-isolate were ramping up pressure on the planning of
charter services.
“This is also leading, regrettably, to disruption to schedules and
increased difficulty of firm commitments in terms of availability and
price,” Mr Austin told The Loadstar.
“Price is under great pressure, too, and rates are continuing to rise
in certain markets. Capacity is also likely to be under greater
pressure over the next months as online retailers utilise space in the
run-up to Christmas and the automotive supply chain improves.
“We are expecting this to rumble on for the foreseeable future, well beyond the end of 2021.”
One Australian source told The Loadstar the fluidity of the
Covid-related lockdowns in China, with handling staff operating on
seven-day rotations followed by 14-day quarantines, was driving “network
uncertainty”.
The source added: “Network plans are changing daily to provide the
required capacity and keep aircraft flying – and Covid issues aren’t
limited to China.”
Although one broker said that, as far as airfreight was concerned,
“China is the big issue”, he noted that some carriers were switching
movements to Hong Kong where services appeared to be operating as
normal.
The broker said: “This has been for the past two to three weeks now
and no one knows for how much longer it will last. The bigger the
backlog gets, though, the higher rates will climb.”
Another forwarder said “dysfunctional airports” were exacerbating
issues, particularly in tandem with the restrictive measures in place at
Chinese airports – “and this isn’t just Shanghai” – with rates
quadrupling in a 72-hour window last week.