In response to the ongoing air cargo congestion in China, freight forwarders Expeditors and DSV Panalpina are promoting alternative modes of transportation like road, rail, and express ocean to help alleviate the strain on the air freight industry. This comes as good news for companies who are struggling to find capacity and meet shipping deadlines due to the ongoing pandemic and resulting supply chain disruptions.Expeditors, a global logistics company based in Seattle, is offering road transportation solutions that allow customers to bypass the congestion at air terminals in China. By utilizing a combination of truck and ferry services, Expeditors is able to move goods from China to Europe in as little as two weeks, offering a more reliable and cost-effective alternative to air freight. According to Expeditors' CEO, Jeff Musser, "We're seeing more customers turn to alternatives like road and rail as they look for ways to meet their supply chain needs. It's a trend that we expect will continue as capacity on traditional air and ocean routes remains tight."Similarly, DSV Panalpina, a Danish freight forwarder, is promoting express ocean services as an alternative to air freight. The company recently launched a new service called "Panalpina Charter Network," which offers customers dedicated charters for urgent shipments from China to key markets in Europe, the US, and Asia. By using a combination of air and ocean transportation, DSV Panalpina is able to offer a faster and more reliable service than traditional ocean freight, while still being more cost-effective than air freight. "We're seeing a lot of interest in our express ocean services as customers look for ways to balance speed and cost," said Jens Bjorn Andersen, CEO of DSV Panalpina. "It's a game-changer in terms of reliability, and we expect it will become an increasingly important part of our offering."Both companies are also exploring the use of rail transportation as an alternative to air and ocean freight. Expeditors has been working with Chinese rail operators to develop new routes and services that offer faster transit times and more frequent departures. DSV Panalpina has likewise been investing in rail infrastructure, and recently completed a new rail freight terminal in Germany that connects to China's Belt and Road Initiative. By using rail freight, customers can bypass congestion at sea and air terminals, while still enjoying faster transit times than traditional ocean freight.The push towards alternative modes of transportation comes as air freight capacity continues to be constrained by the ongoing pandemic. According to the International Air Transport Association (IATA), global air freight demand fell by 17.6% in 2020, while capacity was cut by 23.3%. While capacity has started to recover in some markets, particularly in Asia, congestion at air terminals remains a major issue, with some customers reporting delays of up to two weeks.As a result, many companies are exploring new ways to move goods between China and the rest of the world. In addition to road, rail, and ocean freight, some companies are also turning to e-commerce platforms like Alibaba's Cainiao, which offers air cargo charter services to its customers. According to Alibaba, its air cargo charter network has helped to transport over 1.8 million tons of goods to 75 countries since the start of the pandemic.Overall, the move towards alternative modes of transportation is a positive development for customers struggling to meet their supply chain needs during the pandemic. While air freight will continue to play a critical role in global logistics, the availability of new options like road, rail, and ocean freight offers greater flexibility and resilience to companies that need it most. As the logistics industry continues to evolve, it's likely that we'll see even more innovation and experimentation in the years to come.
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