The specialist Air & Sea team from leading independent logistics operator Europa Worldwide Group comments on the current outlook across the sector.
During the past few years, global supply chains have had to navigate significant disruptions.
The freight forwarding industry again faces a dynamic landscape shaped by evolving market conditions, geopolitical uncertainties, and technological advancements.
Major issues continue to impact both the Air & Sea freight sector, for example, the uncertainty surrounding the accessibility of the Suez Canal. Although in recent weeks we have seen a ceasefire in the region, several major shipping lines have confirmed that they will continue to send most of their fleet around the African continent via the Cape of Good Hope to ensure the safety of their crew, cargo and vessels.
Angus Hind, Director of freight shipping expert Europa Air & Sea, says that the knock-on effect has been large, resulting in unpredictable fluctuations in demand. Some shipping lines delayed the introduction of new vessels during 2024, 2025 sees the changing of carriers between alliances and one major line going alone.
With sea freight shipping schedules experiencing continued delays, Angus is expecting that the air freight market will continue to see some volatility as we progress into 2025. That said, he remains optimistic.
Despite air freight being of a higher rate than sea freight, Europa Air & Sea’s UK import figures certainly suggest there’s more of a hunger for a quicker route to market. Prior to Christmas, Angus’ team across the globe recorded an increase of 16.6 per cent on shipment numbers since the start of the year.
However, the general trend, as Angus explains, is that Europa has also seen an increase in the size of air freight shipments during this period, of nearly 20 per cent year-on-year. This seems to be the general trend for the air freight market, as logistics providers look to move heavier shipments less frequently.
Angus explains: “Within a couple of months of the Red Sea disruption starting, the industry was faced with the additional challenges brought about by the peak of trade for Chinese New Year.
“With factories in China closing, or operating at a lower capacity, and the cost of sea freight increasing exponentially, many European importers decided to hold off on ordering goods – biding their time for some rebalance of the status quo. When this didn’t happen, we saw demand soar and a move to ship heavier, larger loads in as short a time as possible.
“This is a trend which has persisted as we now navigate Chinese New Year again for 2025. With several major European airlines having reduced the number and frequency of passenger flights to Asia (due to a multitude of factors influenced by the pandemic, Russia-Ukraine war and higher operating costs) this resulted in less options for European importers. As a result, they will continue to require more support and visibility over their supply chains this year.”
Europa Air & Sea combines the expertise of a global provider with the support of local teams in Hong Kong, China (Shanghai and Shenzhen), India and the UAE. With its well-established technological infrastructure and its teams’ knowledge of local markets, it can navigate the challenges of moving larger, heavier loads for European importers.
Angus continues: “In all areas of logistics, technology has a huge impact in streamlining services and improving visibility.
“Investment in new technology is essential to enhance supply chain visibility and efficiency. Emerging technologies can help navigate the complexities of the global freight market and improve decision-making.
“Over the last couple of years, Europa Air & Sea has been enhanced by the roll out of LeoWeb, which is part of our Group’s £10m inhouse Leonardo programme. This proprietary software provides customers with real-time visibility of their sea freight cargo and leverages AI technology to help increase awareness of possible delays. LeoWeb has given us control over responsiveness, efficiency, productivity and scalability in a volatile market.”
LeoWeb is a customer-facing online portal, which reduces administration time and increases visibility of consignments through real-time tracking data. Customers can access online quotes, request features and document archives at the click of a button.
Europa Air & Sea has grown rapidly over the past two years, significantly increasing its branch network in the UK and opening strategically located branches across the world to service its international customer base.
With a worldwide agent network and proprietary software solutions, Angus is optimistic about the year ahead.
“We know that market volatility will continue for the foreseeable future, and that is something we can’t control for our customers. What we can do is make sure we have the tools in place to make the movement of goods as efficient, cost effective and customer friendly as possible,” Angus concludes.
Europa handles shipments to and from overseas markets by air or by sea with an established transport and agent network keeping consignments moving and keeping supply chains flowing. To learn more, head to its website: https://www.europa-worldwide.com/europa-air-sea/