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Air cargo demand rises, rates soar as shippers prepare for peak

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Peak season is slated to spark another hectic stretch for air carriers, with shippers looking to expedite freight over congested U.S. ports to meet holiday deadlines. But some retailers already made arrangements to ensure their goods arrive on time, be it by chartering ships or simply shipping inventory earlier if they have the space for it.

Additionally, the inflationary environment and heightened shipping costs may make some retailers think twice about using air transportation over ocean.

“One of the roadblocks is the strong increases in prices, both for businesses and consumers,” the International Air Transport Association said in a September analysis.

Still, air transportation today is a better deal than it was pre-pandemic. “The upshot is that trade and manufacturing activity are impacted by supply chain issues, but air cargo benefits from its speed, which helps meeting peak season demand and will allow it to continue to overperform global goods trade,” IATA said.

Additionally, the inflationary environment and heightened shipping costs may make some retailers think twice about using air transportation over ocean.

“One of the roadblocks is the strong increases in prices, both for businesses and consumers,” the International Air Transport Association said in a September analysis.

Still, air transportation today is a better deal than it was pre-pandemic. “The upshot is that trade and manufacturing activity are impacted by supply chain issues, but air cargo benefits from its speed, which helps meeting peak season demand and will allow it to continue to overperform global goods trade,” IATA said.

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