Kerry Logistics Unveils New Air-Sea Route to Australia & New Zealand from Europe

Last week, Kerry Logistics introduced a new air-sea service from Europe to Australia and New Zealand. The Hong Kong-based logistics company transports freight from eight European countries by air to its base in Hong Kong, where it is then transferred to ocean services bound for Australia and New Zealand. This service offers daily uplift from various European countries with transit times of 20-24 days to Sydney and Auckland. Kerry claims that this service is 50% cheaper than airfreight and three times faster than traditional ocean cargo on the same routes.

In response to disruptions in the Red Sea and Panama Canal, Kerry has seen increased demand for multimodal services. They have introduced various solutions, including sea-air transport from Chinese seaports to European airports, road-air services to Europe, and road-rail options. The sea-air option from China and Southeast Asia to Europe via Dubai is particularly popular, offering faster transit times and cost savings compared to traditional airfreight or ocean transport.

Shipco Transport, a subsidiary of Scan-Group, notes that traffic from Asia to Europe often goes through US west coast gateways, especially Los Angeles, for sea-air options. However, for cargo from South Asia, the sea-air option via Dubai is more cost-effective. While sea-air routes through the US west coast are competitive with routes through the Middle East, sea-air is not a viable option for Asian traffic headed to the eastern US.

In conclusion, while sea-air services provide a temporary solution for shippers facing disruptions or high airfreight rates, they may not be a long-term option. As airfreight rates decrease or disruptions subside, sea-air services may become less appealing to shippers.