E-commerce cargo through Dubai International Airport (DXB) is experiencing “a massive impact” because of the conflict in the Middle East, said Garry Marshall, CEO of the South African Express Parcel Association.
Speaking to Freight News after an Iranian drone attack had caused a nearby fuel tank fire, forcing an airfield-wide suspension and mass diversions on March 16, Marshall said DXB was “used as a hub airport by just about every major airline these days, and they now have to shift everything, mostly back into Europe”.
Big freight forwarders like FedEx and DHL are all materially impacted by the ripple effects of the ongoing war that the United States and Israel have unleashed on Iran, he added.
“Current capacity constraints have serious cost implications for the industry.”
Thankfully, mitigation is worked into the wider system, although the situation randomly changes, Marshall pointed out.
“Your big international airlines all have teams continuously working on contingencies, and they are very creative in finding quick solutions. But a plan made in the morning can change by lunch time because that’s how fluid things are at the moment.”
According to Marshall, the Covid pandemic of 2020 taught airlines to build a lot of flexibility and resilience into the system.
And yet, delays are still a certainty, Marshall said, estimating that it could be two to four days – an issue for service providers working on tight timelines.
“The problem with stop-start cargo flows at Dubai is that courier companies work on certain commitments for their clients. They work on definite and absolute reliability and have to avoid blockages.
“Rerouting, extra legs in the linkages and of course the massive cost of fuel increases faced by all airlines have a real impact on parcel freight,” Marshall said.
