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Panalpina warns shippers to book now to avoid peak season capacity shortages
SWISS forwarding and logistics company Panalpina is urging shippers to book early to avoid higher rates and delays. The call comes as this year's Far East peak season is anticipated to commence earlier than the global peak, and may be even stronger than the already robust 2016 season.
Panalpina is warning that airlines will phase out extra passenger flights - and capacity - for the winter season. The forwarder also pointed that shippers can't bank on past levels of capacity growth, which used to be fuelled by Middle Eastern carriers that are now reevaluating routes, reported New York's Air Cargo World.
"It is in the shippers' interest to act now and take precautionary actions to avoid capacity shortages, longer transit times and potential delays," regional head of air freight Europe at Panalpina, Marc van Dommele, was quoted as saying.
"Such delays can result from busier airports and ground handling agents that have been left crippled by personnel cuts and now cannot reinforce staff on such short notice. Overbookings and capacity shortages could also lead to cargo not being uplifted at all."
Overall market rates are well above last year's, and show no signs of dropping, the forwarder warned. "The closer we get to peak season, the more airlines will increase rates for secured capacity. And when this happens, we will have to pass these price increases on to shippers," added Panalpina's global head of air freight, Lucas Kuehner.
Panalpina is warning that airlines will phase out extra passenger flights - and capacity - for the winter season. The forwarder also pointed that shippers can't bank on past levels of capacity growth, which used to be fuelled by Middle Eastern carriers that are now reevaluating routes, reported New York's Air Cargo World.
"It is in the shippers' interest to act now and take precautionary actions to avoid capacity shortages, longer transit times and potential delays," regional head of air freight Europe at Panalpina, Marc van Dommele, was quoted as saying.
"Such delays can result from busier airports and ground handling agents that have been left crippled by personnel cuts and now cannot reinforce staff on such short notice. Overbookings and capacity shortages could also lead to cargo not being uplifted at all."
Overall market rates are well above last year's, and show no signs of dropping, the forwarder warned. "The closer we get to peak season, the more airlines will increase rates for secured capacity. And when this happens, we will have to pass these price increases on to shippers," added Panalpina's global head of air freight, Lucas Kuehner.
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