newstodate.aero
Dec 18, 2009 (newstodate): This year's Q2 and Q3 were challenging indeed, but we are seeing improvements in Q4, according to a major Danish airfreight forwarder.
-The effects from the financial crisis on a worldwide basis emerged fully only after this year's first quarter. Shipments moved from air to sea, indicating that business companies emptied their stores and moved their goods by cheaper sea transportation in an effort to save costs, says Henrik Mejlstrup, Geodis Wilson Airfreight Director Denmark.
-By the end of this year, stores are almost empty and shipments are returning to air transportation. But this does not mean that we are returning to the good old times. I expect 2010 to become like a mirror of 2009, albeit at a slightly higher level.
-Till last year anything went crazy. Values were hyped, cost awareness was at a low, and everything was sent by air. This is indeed changing; cost considerations are in focus and much business is again order-driven as stores have been emptied and goods are now moving only in smaller quantities, which favors air transportation.
-After a prolonged period with over-capacity and even zero-rates in the airfreight market, carriers have grounded freighters and reduced frequencies in an effort to create an artificial demand. This has led to a situation where rates are now rising again.
-Actually, we are seeing a dramatic increase in airfreight rates, with a hike by over 50-100 percent on rates from some Far East origins to Europe and Scandinavia, and rising rates in other markets as well.
-We are not back to normal. Volumes in 2009 are probably down 20 to 30 percent on last year, but at least Q4 has finally brought recovery back in sight, says Mr Mejlstrup.
-The effects from the financial crisis on a worldwide basis emerged fully only after this year's first quarter. Shipments moved from air to sea, indicating that business companies emptied their stores and moved their goods by cheaper sea transportation in an effort to save costs, says Henrik Mejlstrup, Geodis Wilson Airfreight Director Denmark.
-By the end of this year, stores are almost empty and shipments are returning to air transportation. But this does not mean that we are returning to the good old times. I expect 2010 to become like a mirror of 2009, albeit at a slightly higher level.
-Till last year anything went crazy. Values were hyped, cost awareness was at a low, and everything was sent by air. This is indeed changing; cost considerations are in focus and much business is again order-driven as stores have been emptied and goods are now moving only in smaller quantities, which favors air transportation.
-After a prolonged period with over-capacity and even zero-rates in the airfreight market, carriers have grounded freighters and reduced frequencies in an effort to create an artificial demand. This has led to a situation where rates are now rising again.
-Actually, we are seeing a dramatic increase in airfreight rates, with a hike by over 50-100 percent on rates from some Far East origins to Europe and Scandinavia, and rising rates in other markets as well.
-We are not back to normal. Volumes in 2009 are probably down 20 to 30 percent on last year, but at least Q4 has finally brought recovery back in sight, says Mr Mejlstrup.