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Forwarders claim carriers are controlling capacity to force up air freight rates | The Loadstar

Air freight forwarders have accused some airlines of exploiting the spot market by cancelling scheduled flights and not providing sufficient capacity.

As rates have risen over past months, shippers have struggled to secure space, which they claim airlines have strictly controlled.

“We observe carriers applying more and more dynamic pricing, especially on constrained routes,” Ingo-Alexander Rahn, global head of air freight for DHL Global Forwarding told The Loadstar.

“They actively manage their yields by exploiting the ad hoc market; in some situations even in a less-than-desirable way by cancelling scheduled flights. This must then be compensated via charter flights to ensure a smooth cargo movement.”

Brain Bourke, vice president of marketing at SEKO Logistics, believes the market is ‘not working’ properly.

“Airfreight has always been dynamic in its pricing, as peak periods will produce creative pricing to guarantee service. However, it is important to remember that in many areas of the world, the market is in fact not working.

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Forwarders claim carriers are controlling capacity to force up air freight rates – The Loadstar.

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