European airfreight has continued to enjoy high levels of activity during the summer of 2024, driven by an uptick in passenger traffic during the holiday season and a shift of cargo from other modes to air.
More than six months after the start of attacks by Houthi rebels on cargo travelling through the Red Sea, the disruption is still having a significant impact on air cargo levels, with many shippers opting to divert cargo onto planes rather than risk losing goods or experience significant delays as a result of pirate activity. In fact, IATA has indicated that global demand for airfreight has increased by as much as 15 percent year-on-year as a result. And with many shippers looking to diversify their supply chains to reduce the potential risk of disruption, this has driven a demand for short haul freight solutions to protect the process and ensure deliveries can be made.
At the same time, a significant increase in passenger flights during the summer as travel patterns return to normal after the COVID-19 pandemic has seen capacity for European airfreight grow significantly, with higher value and more perishable items being moved in the bellyhold of commercial flights. IATA’s global air cargo markets data showed strong annual growth in Q2 of this year, with demand up 11.1 percent year-on-year and 7.3 percent increase in capacity. Poor weather in the UK had a significant impact on fresh produce supplies particularly, with shippers seeking alternative sources for traditionally UK-grown products from mainland Europe and north Africa in the short-term. Should inclement weather continue, it is likely that increasing numbers of retailers and manufacturers will look to bolster domestic UK supplies with European produce delivered on short-haul flights in the short to medium term.
However, the most significant development of the summer for European airfreight could have been the impact of the CrowdStrike blackout, which affected 8.5 million Microsoft computers worldwide, causing widespread disruption at airports and freight terminals. And while the issue was dealt with quickly, it indicated just how fragile the UK’s supply chain could be in the face of unexpected disruption. In this instance, shippers and airlines worked closely together to identify capacity gaps to ensure the movement of full loads to make up supply chain shortfalls until the issue could be resolved, but it is clear that even short-lived disruptions could have a long term effect on the supply chain if the air cargo sector does not continue to work with agility to react to unexpected circumstances.
Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics and is the only business group which represents the whole industry, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.
