Global conflicts, such as the wars in Ukraine and Gaza, have profoundly influenced airfreight routes and operations.
Robert Khachatryan, founder and CEO of Freight Right Global Logistics, shared with Air Cargo Week how the operational challenges posed by restricted airspace and rerouted flights led to increased costs, delays, and capacity constraints.
The industry has adopted strategies such as route diversification, collaboration with regulators, and technology integration to navigate these challenges for dynamic route optimisation.
READ: Mobilising for Ukraine
Ukraine and Gaza tensions impact airfreight routes
“Ukraine and Gaza tensions have escalated, leading to restricted airspace and rerouted flights, affecting global airfreight operations”, said Khachatryan.
Similarly, the Red Sea crisis has underscored the importance of agile and adaptable supply chain strategies. Khachatryan discusses the security concerns, increased operational costs, and supply chain disruptions resulting from these geopolitical tensions, highlighting the need for dynamic routing, diversification, collaboration, and resilience planning.
The conflict in Ukraine and Gaza has triggered airspace restrictions and the rerouting of flights, introducing complexities and uncertainties for airfreight operators worldwide.
Khachatryan shared key impacts of changes:
Increased Operational Costs: Rerouting flights to avoid conflict zones has resulted in longer flight paths and increased fuel consumption, leading to higher operational expenses for airfreight companies. These additional costs, sometimes amounting to thousands of dollars per route, contribute to financial strains in an already competitive industry.
Delay in Deliveries: The necessity to circumvent conflict areas has prolonged transit times for airfreight shipments, causing delivery delays. With additional transit times averaging 2-3 hours per flight, time-sensitive cargo faces heightened risks of disruptions, impacting supply chains and customer satisfaction.
Capacity Constraints: Reduced access to direct routes due to airspace restrictions has strained available capacity, exacerbating existing challenges in the airfreight industry. As airlines adjust routes to ensure safety and compliance, the limited availability of direct routes has led to higher freight rates and intensified competition for space on cargo flights.
Risk Management: Airfreight operators have heightened their focus on risk assessment and contingency planning in response to evolving geopolitical landscapes. Prioritising safety and compliance, companies invest in robust risk management strategies to navigate volatile environments and safeguard cargo, personnel, and assets.
READ: Airfreight braces for turbulence
Red Sea Crisis and Important Insights
Khachatryan also discussed the challenges the airfreight industry faces regarding skilled labour and the situation in the Red Sea that resulted in a shift from sea to air freight.
Amidst the Red Sea crisis, global logistics are witnessing a dramatic shift from sea to air freight. According to industry insights, this crisis has led to a surge in airfreight demand as businesses seek alternatives to maritime transport disruptions.
The expert noted, “The turmoil in the Red Sea region has triggered a notable surge in airfreight demand as companies pivot towards air transportation to circumvent delays and uncertainties plaguing maritime routes.”
In conclusion, Khachatryan underscored the importance of resilience, innovation, and collaboration in navigating the airfreight industry’s uncertainties and challenges. By leveraging technology, fostering talent, and embracing sustainability, the industry can adapt, thrive, and continue to play a vital role in global supply chains.
As the airfreight industry evolves, it remains poised to overcome obstacles, seize opportunities, and chart a course towards a sustainable and prosperous future. The sector can soar to new heights through strategic planning, adaptation, and a commitment to excellence, delivering value to customers, stakeholders, and economies worldwide.
