Where’s the capacity gone?

An estimated 10% of global container ship capacity is currently parked outside ports around the world. The Pacific Merchant Shipping Association reported the average number of days incoming containers waited to leave the ports of Los Angeles or Long Beach by truck was 5.2, up from 4.76 in June and besting the previous record of 5.12 back in January. Since a worker tested positive twelve days ago and the Ningbo-Zhoushan port authority shut down Meishan terminal, the facility is slowly reopening. As Splash247 reports, Meishan terminal accounts for around 20% of the approximate 30m teu that pass through the port annually.

Let’s face it if your supply chain exclusively utilizes sea freight, it’s sinking quickly.

This is why more and more shippers are turning to air freight for both critical and common items that are elsewise trapped, sometimes for weeks in containers at inland rail depots throughout the United States. Antonov and Volga-Dnepr, the two largest operators of Antonov heavy-lift aircraft, are booked out six weeks in advance and seeing an unusual mix of cargo.

Speaking to the Journal of Commerce (subscription required), Antonov’s Commercial Director Andriy Blagovisniy estimates that more than 40% of the cargo they are carrying currently is spillover cargo from normal containerized shipping. The JOC story offers a sample of what is flying nowadays including hot tubs, bikes, leaf blowers, and grills.

In Vietnam, for instance, where it is estimated a third of factories are experiencing operational challenges because of COVID, retailers are looking to air freight to relieve the pressure.

 

Answers in Air Cargo

Mach 1 Global Services has greatly expanded our international air cargo reach and capacity, providing space and lift around the world to airports throughout the United States. Our portfolio of services allows those same shippers to have their goods cleared through customs prior to arrival in the United States and immediately upon availability we can collect the cargo and deliver it through either our own linehaul network or utilizing our domestic truck brokerage.

 

Now is the time

Contact Mach 1 to protect space in the coming weeks and months. The traditional fall peak season is fast approaching. Some would argue that it arrived in late 2020 and has only gotten peak-ier and the traditional fall product refresh cycle for many consumer electronics companies that absorbs significant capacity in a normal year will play an outsized role as international passenger flights remain grounded and shippers turn to container ship chartering to ensure their supply chains are not further delayed. 

To learn more about Mach 1’s ability to help shippers identify, prioritize and protect customer relationships through an air cargo pivot, contact your Mach 1 representative today.

 

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