Air Archives | Page 17 of 33

Creative solutions ease Bangladesh export challenges

Oct 15, 2024 | 4PL, Air, International Trade, Middle East, News, Retail, Sea, Sea/Air, Supply Chain

As Bangladesh’s apparel sector ramps up production following months of disruption, exporters are benefiting from creative logistics solutions to overcome rising freight rates and capacity shortages.

Metro shipments from Bangladesh have been utilising an innovative mix of air freight, sea/air, and land/air routings, including through China and India to mitigate costs and delays. These approaches are proving crucial in reducing transport costs and often bypassing traditional Middle Eastern hubs, which have often been congested.

While air freight rates to Europe and the US have surged to their highest levels in two years, routing through alternative hubs, including in China offer viable alternatives. The availability of cargo space on Chinese airlines and the cost-effective nature of these routes are enabling exporters to avoid the bottlenecks plaguing Middle Eastern hubs. Additionally, India is emerging as a key transhipment point, where goods are trucked to Delhi and flown onward to Europe and the US.

Dhaka Airport’s infrastructure issues and capacity constraints have encouraged us to explore alternative transhipment routes. Creative routing strategies such as sea/air, where goods are shipped by sea to selected transhipment hubs before being flown to their final destination, are becoming vital to maintaining efficient supply chains.

Capacity growth in key regions is providing some relief, with air cargo capacity from Asia-Pacific to North America and Europe rising by over 16% and 19% respectively year-on-year. This increase is helping to balance the surge in demand and freight rates, ensuring that Bangladesh’s exporters can continue to navigate these challenging conditions.

Despite ongoing challenges, the outlook for Bangladesh’s exports are optimistic with creative air freight and alternative solutions keeping supply chains moving while mitigating the impact of high rates and capacity constraints.

With flexible routing becoming an integral part of flexible logistics strategies, Metro continue to find innovative ways to adapt to volatile markets, with innovative solutions that maintain supply chain continuity.

Our operations teams and local partners are navigating challenges at Chittagong Port and Dhaka Airport, while creative air, sea/air, and land/air strategies are helping mitigate the impact of high rates and capacity shortages.

If you have any concerns or would like to discuss contingency plans to ensure stability in your supply chain, please EMAIL our Chief Commercial Officer, Andy Smith.

Australia follows US and Canada with stricter air cargo security measures

Oct 2, 2024 | 4PL, Air, Chemical, eCommerce, Exports, Foodstuffs, International Trade, News, Supply Chain

In response to heightened security concerns, the US, Canada, and now Australia have implemented stricter security protocols for air cargo originating from Europe and the CIS, to minimise potential risks after incendiary devices were discovered within European parcel networks.

Australia’s Department of Home Affairs introduced the most recent restrictions on 26th September 2024, aligning with similar measures already enacted by the US and Canada.

The Australian regulation stipulates that air cargo from 55 countries must meet Established Business Relationship (EBR) criteria if destined for the country on passenger aircraft, and unknown senders’ consignments weighing more than 500g are prohibited from flying on passenger planes.

These measures follow incidents in which incendiary packages caused fires in European parcel networks, prompting authorities to raise concerns about cargo security.

The US, under its Air Cargo Advance Screening (ACAS) programme, has introduced stricter regulations that demand more detailed information from shippers and consignees and only cargo from a Known Consignor or a shipper with an established relationship with a regulated agent or carrier is permitted to fly.

Similarly, Canada has rolled out new rules through Transport Canada, for air cargo originating from Europe, the CIS, and Central Asia. Canadian regulations also require that cargo from these regions be tendered only by shippers with an EBR with freight forwarders or air carriers.

To meet these criteria, shippers must have maintained an active account for at least 90 days and completed a minimum of six shipments during that time. Air Canada Cargo, for example, mandates that all air waybills include specific messaging confirming the relationship between the shipper and their logistics partner, in line with these new requirements.

These new regulations come in the wake of several security incidents, including a fire at a logistics hub in Leipzig, Germany, believed to have originated from a package sent from the Baltic region. Authorities suspect potential interference by Russian actors, further emphasising the need for heightened scrutiny across global supply chains.

Metro’s air exports to North America and Australia continue to fly without issue, or delay. Inbound consignments are processed through customs and associated border agencies by our local network partners.

EMAIL Elliot Carlile, Operations Director, for insights, prices and advice.

Air freight surges as supply chains feel the pressure

Oct 2, 2024 | Air, China, Economics, News, Retail, Supply Chain

The air freight sector, which is already experiencing a demand spike in many regions, is anticipating another surge as the strikes at US East and Gulf Coast ports are likely to fuel even more demand on the time-sensitive mode.

With more than half of US containerised volumes moving through East and Gulf Coast ports the strikes will quickly have a profound impact on trade, especially with the peak holiday season approaching. The industrial action is expected to cause significant delays and backlogs, with each day of the strike potentially adding 5–10 days of cargo build-up.

As a result, many businesses will be reassessing their logistics strategies and opting for air freight to avoid the uncertainty of ocean shipping. This shift will put additional pressure on an already strained air freight market, with capacity tightening and rates rising.

Air cargo rates on routes from Asia to the US and Europe have already risen, as robust demand for eCommerce and traditional cargo has lifted load factors to almost 90% in September, with demand expected to strengthen further ahead of Black Friday and Cyber Monday.

As air freight capacity is being redirected by carriers from less profitable trade lanes, such as South America and India, to the more lucrative trans-Pacific and Asia-Europe routes, businesses on these secondary routes are finding it increasingly difficult to secure space for their shipments.

This trend is mirrored across other key Asian markets, with Japan, Bangladesh, and Southeast Asia also seeing sharp increases in air freight prices, driven by typhoon-related disruptions and ongoing strong demand.

Rates from Bangladesh to Europe and the US have risen dramatically, with prices to the US more than three times higher than the same period last year. The political unrest and logistics disruptions in Bangladesh, a key textile export nation, have further limited capacity and pushed up rates.

Q4 peak season set to intensify pressure
Massive eCommerce volumes from Asia are already tying up to 150 freighters per day and with volumes forecast to surge, conventional shippers, including those in retail and automotive, may struggle to secure the space they need for their shipments.

Our block space agreements (BSA) and capacity purchase agreements (CPA) protect space and capacity on the busiest routes, so share your shipping forecasts and we will fly your cargo at the best rates.

Regardless of your cargo type, size and requirements, we have extremely competitive rate and service combinations, to meet every deadline and budget.

EMAIL Elliot Carlile, Operations Director, for insights, prices and advice on our airfreight, charter and sea/air solutions.

Stricter air cargo security measures in response to rising threats

Sep 17, 2024 | 4PL, Air, Customs, eCommerce, News, Retail, Supply Chain, United States

The US and Canada have introduced new security measures aimed at addressing the potential risks posed by incendiary devices found in European parcel networks.

Recent incidents, including a fire at a logistics hub in Leipzig originating from a Baltic package, have heightened awareness of potential threats to global supply chains, with reports suggesting possible interference by Russian actors.

The US Transportation Security Administration (TSA) and Transport Canada have implemented stricter security protocols, adding layers of scrutiny to air cargo entering their respective countries.

These measures, introduced in August and early September, focus on cargo originating from Europe, the Commonwealth of Independent States (CIS), and Central Asia. Air carriers must now provide more detailed information on shippers and consignees to mitigate risks.

Transport Canada’s new rules require that cargo from 55 European and Central Asian countries must come from shippers with an “established business relationship” with freight forwarders or air carriers.

Air Canada Cargo, in line with these measures, has mandated specific messaging on air waybills to confirm the relationship between shippers and their logistics partners. To meet the security standards, shippers must have maintained an active account for at least 90 days, with a minimum of six shipments during that period.

Similarly, the US has introduced “Enhanced ACAS Security Filing,” requiring additional data on the shippers of all goods entering the country. This enhanced scrutiny aims to better identify parties involved in the supply chain before cargo is loaded onto US-bound aircraft. As part of these emergency measures, air carriers can only transport cargo from Europe and CIS countries if it has been tendered by a “Known Consignor” or a shipper with an established business relationship with a regulated agent or carrier.

These new regulations have not come without challenges. Several carriers, including Korean Air Cargo, have imposed temporary embargoes on cargo originating from Europe and the CIS regions due to the difficulties in meeting the updated requirements. The embargoes are set to remain in place until mid-November, with further assessments to follow as the new security rules settle into effect.

Metro’s air exports to North America continue to fly without issue, or delay. Inbound consignments are processed through customs and associated border agencies by our network partners in the US and Canada.

EMAIL Elliot Carlile, Operations Director, for insights, prices and advice.