Air Freight Update


Air Freight Update

Will there be more planes heading to Australia?
It does look like some positive news on this front with the Federal, NSW and VIC Governments making recent announcements on the opening up of our international borders. Albeit opening at a pedestrian rate, we should be seeing more flights to Australia throughout November which will bring about a corresponding increase in cargo capacity.

Will more planes reduce rates?
It is likely we will not see any rate decreases in November as the additional flights whilst welcomed will not be significant, the demand for air freight to Australia continues unabated so the extra capacity will be taken up very quickly.

What Impact is the global sea freight congestion having on air freight?
As a result of the extensive sea freight delays many are having to resort to flying stock to either ensure that stock is on the shelves for XMAS or to ensure that parts and components are readily available so production plants can continue operating and major projects are not delayed. There has also been a significant increase in the usage of charter flights and this is expected to continue into the New Year.

What are the travel bubbles?
The good news with the easing of international travel restrictions and the opening up of international borders is the increased capacity for air freight via travel bubbles. From November the first of the proposed travel bubbles will commence between Singapore and Australia.

Further flight destinations have been scheduled from the beginning of November, for double vaccinated travellers. Qantas will operate up to five return flights a week from Sydney to London and up to four return flights a week from Sydney to Los Angeles.

Plans are being brought forward for flights from Australia to Fiji, Johannesburg, Phuket and Bangkok, as well as a brand new direct route between Sydney and Delhi.

Rates ex the USA to AU have remained solid throughout October and we do not expect much change in November, there is still some rate variance between weekend and midweek flights. Chicago and New York cargo continue to move OK however delays are being experienced ex Los Angeles. A few more charters are coming online ex USA to AU and we will look to take advantage of these where appropriate.

EU and UK
The EU and UK have performed pretty consistently in terms of pricing and services, and we expect them to continue doing so throughout November.

Rates have stabilised ex China post Golden Week where some sharp increases were experienced. We do expect capacity to tighten up though through November primarily as a result of the sea freight delays.

South East Asia
Similar to China rates are still being held however we will monitor and keep you posted.

New Zealand
Space remains very tight to and from NZ and this is expected to continue with the NZ Government recently announcing they will not likely open their International border to Australian travellers until the New Year.

NZ Post has reacted to this by putting on dedicated freighters to keep goods moving OK through to XMAS, these charters will be every TUE, THU and SUN.

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