Speaking at an industry conference in Miami, the International Air Cargo Association (Tiaca) highlighted that ocean freight delays can push shippers toward air freight, though such a switch involves significant cost and operational complexity.
What Happened
According to the conference discussion, shippers begin to consider air freight when they determine that waiting for a delayed vessel is more expensive than paying an air freight premium. Industry leaders noted that the challenge lies in the complexity and added cost of switching modes.
The report also mentioned that the largest US less-than-truckload carrier said shipments fell 1.4% year over year for the four months through September, but it expects to gain business in new verticals. The Pacific Maritime Association said talks with ILWU Local 26 will continue with assistance from the Federal Mediation and Conciliation Service.
Background
Mode switching between ocean and air typically occurs when supply chain time pressure intensifies. Prolonged ocean delays can raise risks of stockouts, contractual penalties, or higher warehousing costs. Air freight shortens transit time but carries significantly higher rates, and requires re-arranging capacity, documentation, and operational processes.
Impact on Shippers
For Chinese exporters and cross-border e-commerce sellers shipping to the US, persistent ocean delays could push up overall logistics costs. In terms of transit time, air freight can shorten delivery but requires re-coordinating first-mile and last-mile connections. On cost, the air premium directly squeezes margins. For customs clearance, air shipments usually require separate documentation and declaration procedures different from ocean freight, so advance verification is necessary.
Recommendations
Shippers are advised to assess delay risks for in-transit cargo in advance, prepare air freight contingency plans for time-sensitive goods, and confirm capacity, chargeable weight, and documentation requirements with logistics providers ahead of time to avoid extra costs and customs delays from last-minute switches.