4. Shippers Switch to Air Freight, impacting carbon targets
Disruption in ocean supply chains drives air cargo demand growth, a more carbon intense transport mode
2023 saw many shippers attempt to switch from air cargo to the cheaper and less carbon intensive ocean container shipping.
However, disruption to ocean container supply chains and deteriorating schedule reliability, primarily due to the Red Sea conflict, has slowed this transition in 2024, with shippers moving back to air freight to meet the required timeframes.
Additionally, the green transition in air cargo still has a long way to go. Sustainable Aviation Fuel (SAF), a key factor for airlines to meet the 2050 net-zero carbon emissions target, accounts for less than 1% of aviation fuel consumption in 2024 (source: IATA).