Air freight rates could spike as Red Sea attacks disrupt shipments via sea

The Houthi attacks in the Red Sea are not only driving up sea freight — air freights are going to get higher too, as global trade flows get increasingly disrupted.

In the past weeks, ocean freight rates have risen as much as $10000.00 per 40’ container, as container ships seeking to avoid the attacks embarked on long detours around the Cape of Good Hope in South Africa, diverting more than $200 billion of cargo away from the critical trade artery.

The delays to maritime trade may prompt some retailers to switch to air freight, as companies that normally ship their goods by sea want to ensure faster delivery, analysts said.

This means that air cargo is about to play an expanded role in the supply chain ecosystem. Air freight can slash delivery times to just a few days compared to weeks taken by ocean carriers.