The Latest Blog Post from Dan Boaz
With 2014 nearing an end, the air freight business year has had a great turnaround. The industry has had five straight quarters of growth and some believe there is still more to come. The third quarter from this year was the the most interesting
quarter. They actually saw demand outpace supply which is encouraging to see. Such demand had not been seen like this in some time.
We saw a rise in 5.4% between October 2014 and October 2013′s numbers which is phenomenal growth. These positive numbers are returning to 2010 form. 2010′s numbers were essentially the post recession bounce back numbers. Of course with the West Coast port congestion, air freights numbers have received a significant boost as a result. With no definitive solution in tack, air freight suppliers are in a wait and see mind sight in terms of receiving business from the area.
An important holiday to note is Chinese New Year. Some may think what does the holiday have to do with air freight but it actually has a lot to do with it. As air cargo begins to slow down just a bit, it will actually begin to pick back up during the middle of January due to Chinese New Year. Factories in China will begin to shut down shortly after middle of January so shippers will begin to move their products in and out of China in order to get things where they need to be on time. Chinese New Year will be observed on February 19th, but factories have been known to be shut down for three weeks.
With the growing consumer electronics business comes more opportunity to grow air freight business. It is reported that 72% of sales of consumer electronics is connected with air freight business. For more on this story, check it out here.
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