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Ocean Disruption Fails to Drive Airfreight Switch Due to Cost

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The signal

Ocean shipping disruptions are not translating into the expected surge in airfreight demand, according to DSV leadership speaking at TIACA's Air Cargo Forum. While delays of two to three weeks have become normalized, the cost premium of airfreight (up to 20 times more expensive) creates a prohibitive barrier for most shippers. Conversion volumes remain limited as shippers struggle to justify the financial case for modal switching. Capacity constraints further complicate the picture.

Atlas Air reports a pipeline of demand for dedicated aircraft that it cannot currently accommodate, with most airlines operating under lengthy fixed-term contracts that leave little room for ad hoc spot bookings. Shippers waiting too long to arrange alternatives face prohibitively expensive rates for remaining capacity. Operational and regulatory complexities add another layer of friction. Documentation requirements, dangerous goods verification, aircraft dimension compatibility, and cold chain maintenance create significant barriers to sea-air intermodal movements.

A case study involving Honduran okra shipments to the UK illustrates how even a successful one-off sea-air move cannot easily scale due to capacity consistency requirements and customer expectations. These structural challenges mean disruptions are not automatically driving a permanent shift in modal preferences.

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