As consumers eagerly await new jeans, underwear, and even electronics that remain stuck in transit, major brands find themselves in a race against time. The ongoing global supply chain disruption has created an invisible stranglehold on product distribution. To ensure timely product availability and meet growing market demand, prominent companies including Levi Strauss, Lands' End, and PVH (parent company of Tommy Hilfiger and Calvin Klein) are increasingly turning to expensive air freight solutions to gain competitive advantage.
Surging Air Freight Demand: Brands Pay Premium for Speed
"We've had to increase air freight," acknowledged Harmit Singh, executive vice president and CFO of Levi Strauss. James Gooch, president and CFO of Lands' End, echoed similar challenges: "We're certainly facing the same issues as everyone else," noting that expedited shipping "adds some cost." PVH went further by explicitly including additional air freight expenses in its 2021 investor outlook. The company anticipates inventory delays lasting four to six weeks, necessitating faster transportation to "maintain our sales plans for the second half," explained Mike Shaffer, PVH's executive vice president, CFO, and COO.
The first half of 2021 saw inventory delays become systemic as companies struggled to keep pace with rapidly growing demand. PVH faced factory closures in India due to pandemic lockdowns, while its Sri Lankan underwear factories operated below capacity, causing production delays. For temporary disruptions lasting weeks, PVH considers expedited freight services—including "faster vessels"—as appropriate solutions. "This is particularly true for underwear, where we can receive goods faster without excessive costs," Shaffer noted. "These smaller items allow significant quantities per shipment, so we evaluate each order individually."
From semiconductors and jeans to masks and vaccines, many high-demand products facing disruptions are now being transported by air. However, air imports substantially increase costs for most shippers. Peloton reportedly spent $100 million to expedite shipments through air and premium ocean freight.
The Pandemic's Unconventional Air Cargo Market
Air freight's logistical flexibility has become both a lifeline and windfall for cargo carriers recovering from pandemic impacts. "Despite reduced capacity during COVID-19, air cargo has experienced continuous peak-season conditions, with additional disruptions like the Suez Canal blockage further driving demand," wrote Matt Castle, VP of air freight services at C.H. Robinson, in an April company blog.
Ordinarily, global disruptions singularly benefit air freight as the fastest transport method. But with passenger flights—which typically carry substantial cargo—being canceled during the pandemic, capacity dwindled significantly. This dynamic led PVH to explore alternatives like "faster vessels." "We found air freight constrained. Fewer flights were available, though we prioritized certain product categories," such as underwear, Shaffer told investors.
Demand growth coincides with reopening economies. As pandemic restrictions ease in markets like the U.S. and China, rebounding consumer confidence has spurred retail reopenings and increased passenger flights—expanding both product demand and available cargo space. "With restrictions lifting, more passenger aircraft are carrying cargo alongside dedicated freighters," observed Edward Ryan, CEO of Descartes Systems Group. "Moreover, as physical stores reopen, warehouse and store replenishment has become a major factor driving freight volume."
Retailers Weigh Costs Against Opportunities
For retailers and airlines alike, this environment presents both challenges and opportunities to offset higher freight costs with increased sales—requiring careful assessment of where and how long these trends will persist. Levi Strauss CEO Chip Bergh addressed this dynamic when asked about demand forecasting during a recent earnings call: "This is the biggest challenge we all face," Bergh stated. "Is what we're seeing now sustainable for the next six to twelve months, or is this temporary before returning to pre-pandemic patterns?"
Facing persistent supply chain challenges, brands stand at a crossroads: continue relying on expensive air freight to secure market share, or pursue cost-effective alternatives like optimized ocean routes and diversified production bases. This dilemma tests both operational capabilities and strategic foresight regarding future market trends.
For consumers, this "air freight race" will manifest in product pricing and availability. While new jeans may arrive faster, they'll likely carry slightly higher price tags. For the industry, this crisis presents an opportunity for profound reflection and transformation—prompting companies to reevaluate global operations and risk management strategies to better navigate future disruptions.
Air Freight: A Temporary Fix, Not a Long-Term Solution
While air freight alleviates short-term supply chain pressures, its high costs and capacity limitations prevent widespread permanent adoption. Brands must complement emergency air shipments with comprehensive long-term strategies. Some companies are diversifying production across multiple regions to reduce single-source dependencies. Others are strengthening logistics partnerships to optimize routes and enhance supply chain transparency. Additionally, investments in digital technologies—like AI-driven demand forecasting and inventory management—help minimize stock imbalances caused by inaccurate predictions.
In this era of uncertainty, continuous innovation remains essential for competitive survival. For brands, identifying growth opportunities within supply chain challenges may prove decisive for long-term success.
Supply Chain Resilience Emerges as Core Competency
Today's global supply chains face unprecedented tests from geopolitical risks, natural disasters, and pandemic aftershocks. In this environment, supply chain resilience—the ability to withstand shocks, recover quickly, and adapt—has become a critical competitive differentiator. Building resilient operations requires robust risk management, flexible production capabilities, diversified sourcing, efficient logistics networks, and collaborative partnerships across supply chains.
The Future: Digitalization and Sustainability Trends
Looking ahead, digital transformation and sustainability will shape supply chain evolution. Digital tools enable transparent, intelligent, and automated operations that boost efficiency while reducing costs and risks. Sustainability demands environmentally and socially responsible practices that balance economic, ecological, and ethical considerations. Examples include blockchain-enabled product tracing, AI-optimized logistics to reduce emissions, and supplier collaborations promoting sustainable materials and methods.
Ultimately, these efforts converge on meeting consumer expectations for quality, affordability, and timely delivery—while addressing growing concerns about environmental and social responsibility. Companies that successfully navigate these challenges while embracing necessary transformations will emerge stronger in tomorrow's marketplace.