SEKO Logistics
SEKO Logistics’ vice president of global air freight, Shawn Richard, spoke of the impact of trade relations and increased oil and jet-fuel prices on the market. “Once the seasonal flying currently in place until winter season – Oct. 1 – terminates for the year, demand for air transport services will not be matched by capacity,” Richard said. “Other contributing factors are the fear of ‘trade wars,’ as tariffs continue to be levied on specific commodities. World oil prices may continue to rise and jet fuel costs account for about 20 percent of carrier DOE.
Richard said that increased load factors have enabled carriers to “initiate additional surcharges,” such as variable freight surcharges, increased fuel surcharges and higher labor costs, and that carriers need to collaborate with their ground handlers to get ready for increased volumes, which will inevitably determine the success or failure.
“Most customers are very focused on longer-term pricing stability,” Richard added, “and are a bit more lenient to a slightly longer transit if the costs are kept in line with their buying experience over the last year.”