In the context of blocked shipping in the Red Sea, the global shipping industry faces huge challenges, while the air cargo sector has unexpectedly met an increase in business volume. According to the Wall Street Journal, retailers and manufacturers are increasingly relying on air freight to transport goods to avoid delays and uncertainties in shipping. This change has brought an unexpected boost to international air freight carriers during the downtime period of the industry, especially in times that were originally considered off-season.

The obstruction of Red Sea shipping mainly stems from the attacks on container ships near the Yemeni coast by the Houthi armed forces. As a result, many shipping companies have to detour around the Cape of Good Hope at the southern tip of Africa or suspend passage through the Suez Canal, increasing the sailing time by at least 10 days. Data released by the International Monetary Fund (IMF) shows that the number of merchant ships passing through the Suez Canal in the first quarter of this year decreased by 45% compared with the same period last year. The stagnation of this important blocked trade corridor not only exacerbates the pressure on the global supply chain but also boosts the demand and price of air freight.

According to data from maritime data and intelligence platform Xeneta, global air freight has grown at a double-digit rate per month over the past four months, on trade routes connecting the Middle East and South Asia to Europe, where freight demand is strong, with average current freight prices rising 71 percent over the same period last year.air transportThe average current freight price of goods also increased.

While the cost of air shipping is much higher than sea shipping, this cost increase is worthwhile for companies that need quick deliveries. Especially for companies that rely on seasonal products and key components, delays in sea shipping can have a serious impact on production plans and market supply. Due to a shortage of components, manufacturers including Tesla and Volvo have had to suspend production in some factories. This forces manufacturers to move high-priority goods from sea shipping to air shipping to ensure continued operation of the production line.

On the other hand, with the rapid growth of e-commerce companies in Asia such as Temu and Hyde, their demand for air freight is also growing, which currently rely mostly on air freight to deliver goods to global consumers.

The Red Sea crisis not only exposed the vulnerability of global trade depending on a single route, but also highlighted the irreplaceable role of air freight in the global supply chain. While air freight costs are high, its flexibility and speed advantages are obvious in addressing emergencies and securing critical supply chain liquidity. Facing potential future global trade challenges, the role and value of the air freight industry is expected to be further highlighted.