Shipping is a constantly evolving industry, and recent mergers among shipping lines and airlines are changing the way cargo space is allocated. For Australian businesses, this has important implications for both air and sea freight. Zoran Ilic from ISS Shipping explains, “We have seen a lot of mergers of companies, so shipping lines and airlines merge their space allocations. This has created some issues with being able to load our containers on vessels or load our air cargo into aeroplanes.”
Challenges in Securing Cargo Space
Mergers often result in fewer sailings or flights, as carriers optimise schedules and capacity. While this can improve efficiency for the carriers, it increases the challenge for businesses trying to move their products on time. Zoran highlights, “Space in the shipping line industry has always been challenging. Planning and securing space ahead of time is critical.” Companies that fail to plan early risk delays, missed deadlines, and increased costs.
Peak periods, such as the lead-up to Christmas or Chinese New Year, amplify these challenges. Cargo space is at a premium, and businesses must work closely with logistics partners to secure bookings. Zoran notes, “If you need your shipments to move as soon as possible, place bookings in advance. Make sure everything is prepared correctly so you are not left behind.”
Air and Sea Freight Implications
Both air freight and sea freight are impacted by mergers. While sea freight typically offers larger capacity, blank sailings and schedule adjustments can disrupt transit times. Air freight has become an increasingly important option for meeting tight deadlines, but limited space and rising prices require careful planning. “We have seen a slight increase in air freight demand because of longer sea transit times. Even though there is still room in planes, prices have increased slightly,” Zoran explains.
Businesses are finding that a dual approach, using both air and sea freight strategically, offers the best way to balance cost and speed. By combining options, companies can navigate congestion and avoid costly delays while ensuring their shipments reach their destinations on time.
Working with Logistics Partners
Collaboration with experienced freight forwarders is key to overcoming these challenges. Partners like ISS Shipping help businesses identify the best carriers, alternative routes, and timing strategies. Zoran emphasises, “Managing the whole process, from the supplier to the customer, is vital. It is beyond the control of a forwarder to change carrier schedules, but we can help customers plan and adapt.”
Exploring Alternative Supply Hubs
In addition to careful planning, diversifying sourcing can provide a buffer against space constraints. Zoran observes, “We have seen growth in imports from places like Vietnam, Bangladesh, and other Southeast Asian countries. Diversifying suppliers can make a big difference when space is limited.” By exploring new markets, businesses can reduce dependency on any single hub and improve supply chain resilience.
Mergers and space constraints are transforming the logistics landscape. Australian businesses that plan ahead, collaborate closely with partners, and remain flexible will be better positioned to succeed. As Zoran concludes, “The key is early planning, staying in close communication with your logistics partners, and being flexible with your supply chain. That is how you navigate these industry changes successfully.” Combining air and sea freight, diversifying suppliers across multiple regions, and monitoring schedules to adapt quickly are practical ways to manage space limitations and avoid costly delays.
