Shippers pay the price as supply problems trigger costly airfreight fixes

Even as forwarders and shippers lock in air cargo capacity, production setbacks and unreliable ocean services are still forcing manufacturers to pay heavily for emergency lift to meet customer deadlines.

Recent earnings disclosures from Rico Auto Industries, Netgear, and Logitech show how quickly supply problems translate into additional airfreight costs – squeezing margins and leaving companies seeking to recover the bill from customers or suppliers.

Shippers preparing next year’s freight tenders still face the risk of costly last-minute shipments, even if overall airfreight rates fall.

Rico Auto, in last week’s earnings call, disclosed a ₹400m ($4.3m) airfreight bill after longer ocean journeys and difficulties launching new components left it struggling to build sufficient inventory for programmes serving BMW and Toyota.

This story was originally published by The Loadstar. Read the full story at The Loadstar →