Shanghai/Amsterdam — As the global air freight market continues to face multiple challenges including capacity shortages and soaring prices, logistics leader Geodis has secured a dedicated bi-directional air cargo route between Asia and Europe, providing stable transportation services through 2021.
Unprecedented Challenges in Global Air Freight
The COVID-19 pandemic has severely impacted global aviation, with passenger flight reductions causing dramatic shrinkage in belly cargo capacity. Meanwhile, economic recovery has increased cross-border trade demand, particularly with year-end peak season approaching. Vaccine distribution requirements have further strained available capacity.
- Passenger flight reductions: Travel restrictions have decreased passenger flights by over 70% in some regions, eliminating crucial belly cargo space.
- Peak season demand surge: Holiday season e-commerce and retail shipments are creating unprecedented air freight demand.
- Vaccine transportation priority: Temperature-controlled vaccine shipments are occupying significant cargo space.
- Ocean freight disruptions: Port congestion has diverted some traditional sea cargo to air transport.
These converging factors have created what industry analysts describe as the most severe air cargo capacity crisis in decades, with spot rates from China to Europe increasing 48% year-over-year according to TAC Index data.
Geodis' Strategic Response
The logistics provider first initiated charter services in March 2020 during initial pandemic disruptions. The newly announced dedicated route between Shanghai Pudong (PVG) and Amsterdam Schiphol (AMS) represents a long-term commitment, operating weekly flights in both directions.
Key benefits of the dedicated route include:
- Guaranteed capacity unaffected by market fluctuations
- Optimized transit times through direct routing
- Customized solutions for specialized cargo requirements
- Integrated end-to-end logistics support
Automotive Sector Benefits
European automotive manufacturers have emerged as primary beneficiaries of the service. The just-in-time production model used by automakers makes reliable parts delivery essential. A single delayed component shipment can halt entire production lines, costing millions in lost productivity.
Geodis' dedicated flights provide manufacturers with scheduled, predictable transportation for time-sensitive automotive components, helping maintain production continuity during supply chain disruptions.
Industry-Wide Capacity Solutions
Other logistics providers have implemented similar measures. DHL Global Forwarding has launched dedicated air routes connecting Asia Pacific with North America and Europe, focusing on technology, manufacturing, and healthcare sectors.
While these capacity solutions help stabilize supply chains, shippers face significantly higher costs. Analysts suggest the capacity crunch may intensify through Q4 2021 due to seasonal demand and anticipated COVID-19 vaccine distribution requirements.
Flexport analysts note that upcoming technology product launches, particularly new smartphones typically transported by air, will create additional pressure on limited cargo space.
Long-Term Supply Chain Considerations
Industry experts recommend several strategies for businesses navigating the constrained air freight market:
- Advanced capacity booking and planning
- Diversified transportation mode strategies
- Strengthened partnerships with logistics providers
- Supply chain optimization to reduce air freight dependency
As global supply chains continue adapting to pandemic-driven disruptions, dedicated air cargo solutions like Geodis' Asia-Europe route provide critical stability for time-sensitive shipments across multiple industries.