Due to attacks on ships, air transportation will also rise in price
The main players in sea and air transport believe that the attacks on ships in the Red Sea region are forcing companies to take alternative routes and are also boosting demand for air transport.
According to transport and logistics media, the crisis in the Red Sea, where ships en route to the Suez Canal are under attack (27 attacks since November 19), is likely to last for months yet. This is leading to significant changes, such as longer routes for ships avoiding the Suez Canal, or the more costly option of air transport.
Many industry players believe that a combination of sea and air transport could be the solution. They also believe that demand for air freight will inevitably increase, leading to higher prices.
The Red Sea lies on the main east-west trade route (Asia-Europe-America) and around 12% of the world’s maritime traffic accesses the Suez Canal via its waters. More expensive than sea freight, air freight represents only 1% of world trade by volume, according to IATA (International Air Transport Association).
Read also
Wheat in Southern Brazil Impacted by Dry Weather and Frosts
Oilseed Industry. Leaders and Strategies in the Times of a Great Change
Black Sea & Danube Region: Oilseed and Vegoil Markets Within Ongoing Transfor...
Serbia. The drought will cause extremely high losses for farmers this year
2023/24 Safrinha Corn in Brazil 91% Harvested
Write to us
Our manager will contact you soon