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Air Cargo Is Reemerging as a Critical Supply Chain Lever

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Air cargo is regaining strategic importance as supply chains respond to disruption, volatility, and shifting trade patterns.

Air cargo has always occupied a specific place in global supply chains. It is fast, reliable, and expensive. For that reason, companies have traditionally used it selectively: urgent shipments, high-value goods, critical spare parts, pharmaceuticals, electronics, and other time-sensitive flows.

That basic role has not changed.

What has changed is the operating environment around it.

Global supply chains are again facing a mix of ocean disruption, geopolitical risk, port uncertainty, and service-level pressure. In that environment, air cargo is no longer just an emergency option. It is becoming a more deliberate supply chain lever.

Disruption Is Repricing Speed

The value of speed rises when slower modes become less predictable.

That is what is happening now. Red Sea disruption, Middle East instability, longer ocean routings, and uneven port reliability have all increased the cost of delay. Recent freight market reporting shows that geopolitical instability is pushing some freight from sea to air while also tightening air cargo capacity and raising costs.

This does not mean companies are broadly abandoning ocean freight. They are not. Ocean remains the dominant mode for global goods movement.

But the modal decision is becoming more tactical.

When lead times stretch, when inventory buffers are thin, or when customer commitments are at risk, air cargo becomes a way to preserve optionality. The premium is still real. But in some cases, the cost of delay is greater than the cost of air freight.

Air Cargo Demand Has Strengthened

Recent industry data shows global air cargo demand growing year over year, with capacity also expanding. International demand has been especially strong.

That is an important signal. It does not point to a runaway airfreight market. It points to a market where air cargo is being used more deliberately as companies respond to disruption and service pressure.

The pattern is selective, not universal. Companies are not moving entire supply chains into air. They are identifying specific products, lanes, and customer commitments where speed has strategic value.

That is the right way to think about air cargo now.

Inventory Exposure Is Driving Decisions

Longer and less predictable transit times increase inventory exposure.

If ocean freight takes longer, companies need more safety stock. If arrival dates become less reliable, planners have less confidence in replenishment timing. If inventory is already lean, delay becomes more expensive.

Air cargo compresses that uncertainty.

For a low-value, stable-demand product, the economics may not work. For high-margin electronics, critical medical products, aircraft parts, semiconductor components, or industrial replacement parts, the calculation can change quickly.

The question is not simply whether air freight is expensive. It is whether the business consequence of being late is more expensive.

That is a different decision frame.

The Use Cases Are Specific

Air cargo is strongest where time matters and value density is high.

Electronics and semiconductors can justify air freight because product value is high and cycle times matter. Pharmaceuticals and healthcare products often require speed, reliability, and controlled handling. Aerospace and industrial spare parts can justify premium freight because downtime costs can overwhelm transportation costs. Certain consumer goods can move by air when demand spikes or launch windows matter.

These are not generic freight flows. They are targeted supply chain decisions.

That distinction matters. Air cargo becomes inefficient when it is used as a substitute for poor planning. It becomes valuable when it is designed into the supply chain as a risk-response option.

Capacity Remains a Constraint

Air cargo is not infinitely flexible.

Capacity depends on both dedicated freighters and belly capacity on passenger aircraft. Freighter capacity is limited. Belly capacity depends on passenger flight networks and route economics. When disruption hits major air corridors, capacity can tighten quickly.

Recent disruption across Middle East air corridors has shown how sensitive the air cargo network can be to airspace closures and hub congestion. When capacity tightens, shipments ranging from perishables to aircraft parts can be delayed or stranded.

That is the paradox of air cargo. It is a resilience tool, but it is also exposed to its own network constraints.

Companies need to plan for that reality. Air cargo should be part of a broader resilience strategy, not the only backup plan.

Planned Optionality Beats Emergency Expediting

The most mature use of air cargo is not emergency expediting. It is planned optionality.

Emergency expediting is reactive. Something goes wrong, inventory is short, and the company pays whatever it takes to recover.

Planned optionality is different. It identifies in advance which products, customers, and lanes justify air freight under specific conditions.

That requires segmentation.

Which SKUs are critical? Which customers require service protection? Which plants are most exposed to inbound disruption? Which lanes are prone to delay? Which products have enough margin or downtime risk to justify premium freight?

Those questions turn air cargo from a panic button into a supply chain design tool.

Air Cargo Belongs in Planning Models

For many companies, air freight still sits outside the core planning model. It is treated as an exception after the plan fails.

That is changing.

Air cargo should be incorporated into scenario planning, inventory strategy, and service-level design. It should be part of the conversation around safety stock, regional inventory positioning, supplier risk, and customer segmentation.

The best supply chains will not use air cargo everywhere. They will know where it matters.

That means defining the thresholds. When does air freight become justified? What is the inventory risk? What is the customer impact? What is the margin exposure? What is the cost of production downtime?

Without those thresholds, air cargo decisions become emotional and expensive. With them, air cargo becomes disciplined.

A Structural Role, Not a Temporary Spike

Air cargo demand surged during the pandemic and then normalized. The current shift is different.

This is not simply a repeat of emergency pandemic logistics. It reflects a broader change in supply chain design. Companies are operating in a world where geopolitical risk, trade disruption, port uncertainty, and demand volatility are more persistent.

In that environment, speed has strategic value.

Air cargo will not replace ocean freight, rail, or trucking. It will remain a premium mode used selectively. But its role is becoming more structural because the need for flexibility is becoming more structural.

The supply chain lesson is clear: air cargo is no longer just an exception-management tool. Used well, it is a lever for resilience, service protection, and optionality.

That makes it more important than its share of total freight volume would suggest.

The post Air Cargo Is Reemerging as a Critical Supply Chain Lever appeared first on Logistics Viewpoints.

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Descartes Adds Predictive Fleet Safety Intelligence with Idelic Acquisition

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Adds Critical Data to Global Logistics Network and Advances AI-Powered Fleet Safety and Performance Management Capabilities

WATERLOO, Ontario and ATLANTA, Georgia, April 23, 2026 (GLOBE NEWSWIRE) — Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired Idelic, a leading provider of AI-powered driver safety and performance management solutions.

Idelic’s safety intelligence platform unifies day-to-day safety management activities such as training, monitoring, reporting and coaching into a single solution. With an AI analytics workflow designed to measurably impact driver behavior, fleets can proactively identify and reduce driving risk by leveraging the platform’s unique dataset of more than 40 billion miles of telemetry and over 400,000 accident records. The company collects real-time, highly detailed event-level data through a connected network of more than 80 telematics, risk management, and regulatory system integrations. Built on years of machine learning applied to predictive accident models across more than one hundred and fifty fleets, Idelic’s AI capabilities are field-proven in predicting driver risk and optimizing safety training interventions.

“Productivity and safety are equally critical for fleet operators,” said James Wee, General Manager of Fleet Management at Descartes. “This acquisition adds critical data to our Global Logistics Network (GLN) and enhances Descartes’ final-mile footprint by adding highly advanced fleet safety capabilities and deep domain expertise. Idelic’s AI-powered predictive safety intelligence functionality, when combined with Descartes’ industry leading routing planning and execution technology, enables us to deliver a complete and cutting-edge fleet performance management solution that uniquely incorporates driver behavior and safety signals into our robust operational data set.”

“The need for trusted, real-time fleet and operational data is becoming increasingly critical as customers advance their AI strategies,” said Edward J. Ryan, Descartes’ CEO. “By combining Idelic’s predictive safety intelligence and unique, critical data with Descartes’ GLN, we’re strengthening the data foundation that powers smarter fleet performance decisions and safer, more efficient operations.”

Idelic is headquartered in Pittsburgh, Pennsylvania. Descartes acquired Idelic for up-front consideration of approximately US $28 million satisfied with cash on hand, plus potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is US $12 million, based on the combined business achieving revenue-based targets in each of the first two years post-acquisition. Any earn-out is expected to be paid in fiscal 2028 and fiscal 2029.

About Descartes

Descartes powers more responsive, efficient, secure and sustainable international and domestic supply chains by uniting logistics-intensive businesses on its Global Logistics Network (GLN). Shippers, carriers, and logistics service providers connect and collaborate on the GLN leveraging technology, data and AI to manage last mile deliveries, domestic and international shipments, transportation rating and payment, global trade research, customs compliance and a variety of regulatory processes. Learn more about Descartes at www.descartes.com

The post Descartes Adds Predictive Fleet Safety Intelligence with Idelic Acquisition appeared first on Logistics Viewpoints.

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Visibility Isn’t Decision-Making in Supply Chain AI

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Supply chain visibility has improved dramatically. But seeing a problem is not the same as deciding what to do about it. That is where many AI initiatives still fall short.

A supply chain manager no longer has to wait for a phone call to learn that a shipment is late. In many cases, the system already knows. The carrier feed has updated. The ETA has changed. The control tower has flagged the exception. An alert is sitting in the dashboard.

That is progress.

But it is not the same as resolution.

The harder question comes next: what should happen now?

A delayed shipment may be a minor inconvenience. It may also create a production shutdown, a missed customer commitment, or an expensive expediting decision. The system can show the delay. It may even recommend a response. But unless it understands the full operating context, the recommendation can be incomplete.

That is the gap between visibility and decision-making.

Visibility Solved the First Problem

Over the past decade, companies have invested heavily in supply chain visibility. Control towers, real-time tracking, event platforms, and data integration tools have made it easier to see what is happening across transportation, warehousing, suppliers, carriers, and customers.

That was necessary. For years, supply chain teams operated with too much delay and too little shared information. They learned about problems after the fact. They chased updates manually. They managed exceptions through email, spreadsheets, and phone calls.

Visibility improved that picture.

But visibility answers only the first question: what is happening?

It does not automatically answer the more valuable question: what should we do?

The Late Shipment Problem

Consider a late inbound shipment of components headed to a manufacturing site.

The visibility platform flags the delay. The AI model may suggest expediting the shipment by air. On the surface, that seems reasonable. The shipment is late. Air is faster. The recommendation appears logical.

But the real decision depends on context.

Is the component needed for tomorrow’s production run, or next week’s? Is there substitute inventory at another site? Is the customer order attached to this component strategic or routine? What is the cost of expediting relative to the margin on the order? Will pulling air capacity for this shipment create a problem somewhere else?

Without that context, the system is not really making a decision. It is responding to an event.

That distinction matters.

More Alerts Are Not Better Decisions

AI can increase the speed and volume of detection. It can identify more anomalies, generate more alerts, and surface more possible actions.

But most supply chain teams do not need more alerts. They need better prioritization.

A one-day delay on a low-value replenishment shipment may not matter. A six-hour delay on a critical component may matter a great deal. A missed delivery window for a strategic customer may require immediate escalation.

The value is not in seeing every exception. The value is in knowing which exceptions deserve action.

That requires decision logic.

Decision Logic Is the Missing Layer

Decision logic is the operating structure that turns a signal into a response. It defines service priorities, cost thresholds, inventory rules, customer commitments, capacity constraints, and escalation paths.

Most companies have this logic, but it is scattered.

Some of it lives in planning systems. Some sits inside transportation workflows. Some is buried in spreadsheets. Some exists only in the judgment of experienced planners.

AI cannot reliably automate decisions when the decision rules are fragmented or informal.

That is why many systems remain advisory. They can tell the organization what may be wrong, but people still have to decide what matters, determine the right action, and push execution across functions.

The Real Constraint Is Execution Authority

A recommendation is not an outcome.

If the AI system recommends expediting a shipment, something still has to happen. Capacity must be secured. Cost must be approved. Inventory plans may need to change. The customer may need to be notified. The production schedule may need to be adjusted.

If those steps are not connected, the system has not changed the operating model. It has only added a smarter alert.

This is where many AI pilots struggle. The model performs well in a controlled setting. It identifies the problem. It proposes a response. But in live operations, the recommendation runs into unclear decision rights, incomplete data, or manual workflows.

The issue is not always the model. Often, the issue is that the organization has not defined who or what has authority to act.

From Control Tower to Control System

The next phase of supply chain technology should not be measured by dashboard quality alone. It should be measured by whether systems can help execute better decisions.

That means moving from control towers toward control systems.

A control tower provides visibility. A control system connects visibility to context, decision logic, workflow, and feedback.

It knows which exceptions matter. It knows what options are available. It knows which decisions can be automated and which require human review. It records the outcome and improves over time.

That is a higher bar than visibility. It is also where supply chain AI becomes operationally useful.

The Late Shipment, Revisited

In the late component example, the issue is not simply whether the shipment is delayed. The issue is whether the delay changes production, customer service, inventory allocation, or cost exposure.

Until the system can connect those consequences, it is still reporting the problem rather than managing it.

That is the practical test for supply chain AI. Can it connect a signal to the business consequence? Can it recommend the right action? Can it route that action to the right person or system? Can it learn from the result?

If not, it is still a visibility layer with better language around it.

Humans Still Matter

None of this means removing people from supply chain management.

The point is the opposite.

Human judgment should be focused where it matters most: ambiguous exceptions, high-value trade-offs, customer-sensitive decisions, and situations where the consequences of error are significant.

Routine, low-risk decisions should be handled with more automation. Complex decisions should be escalated with better context.

That is the right division of labor between people and AI.

The Practical Path Forward

Companies do not need to solve this across the entire supply chain at once. They should start with the most common and costly decision points: late inbound shipments, inventory allocation conflicts, carrier exceptions, production constraints, supplier delays, and customer service failures.

For each one, the questions are straightforward:

What data is required? What constraints matter? What actions are allowed? What can be automated? What requires approval? Who owns the decision?

Those questions are not glamorous. But they are the foundation of useful supply chain AI.

Visibility was necessary. It was never sufficient.

The next competitive advantage will not come from seeing more. It will come from deciding better, faster, and with enough context to act.

The post Visibility Isn’t Decision-Making in Supply Chain AI appeared first on Logistics Viewpoints.

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Transpac ocean rates continue to edge up on Iran pressure – April 28, 2026 Update

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Transpac ocean rates continue to edge up on Iran pressure – April 28, 2026 Update

Published: April 28, 2026

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Weekly highlights

Ocean rates – Freightos Baltic Index

Asia-US West Coast prices (FBX01 Weekly) increased 1%.

Asia-US East Coast prices (FBX03 Weekly) increased 3%.

Asia-N. Europe prices (FBX11 Weekly) decreased 3%.

Asia-Mediterranean prices(FBX13 Weekly) decreased 3%.

Air rates – Freightos Air Index

China – N. America weekly prices stayed level.

China – N. Europe weekly prices decreased 1%.

N. Europe – N. America weekly prices decreased 1%.

Analysis

Increased fuel costs from the Strait of Hormuz closure continues to keep container rates elevated during the post-Lunar New Year, pre-peak season, low demand season for ocean freight when prices normally reach their floor for the year.

Even with this pressure however, rates are well below spikes caused by recent disruptions like the Red Sea crisis and trade war frontloading.

Asia – Europe rates eased 3% last week to both N. Europe and the Mediterranean. Though prices on both lanes climbed by several hundred dollars in the first weeks of the war, N. Europe rates of $2,668/FEU are just 8% higher than before the war and Mediterranean prices at $3,527/FEU are 3% lower than in late February. Maersk recently cancelled an upcoming Asia – Europe GRI, and carriers have started to announce more blanked sailings.

War-related rate increase attempts have not succeeded in keeping prices on these lanes much above their pre-war baselines, but upward pressure from the conflict is likely keeping rates higher than they otherwise would be. Asia – Europe rates are more than 15% higher year on year for both lanes, and more than 50% above rate levels in October, the other most recent low-demand period.

On the transpacific carriers have had more success steadily pushing rates up and preventing backsliding since late February. Prices ticked up slightly for both coasts last week, with West Coast rates of $2,675/FEU up 45% compared to the start of the war and almost 90% higher than post-peak season levels back in October. East Coast prices at just below $4,000/FEU are 30% higher compared to just before the war, and 30% above the previous low-demand stretch in October.

Nonetheless, even with these increases, the low demand and high capacity environment – and possibly the moderate easing of oil and bunker rates compared to earlier highs since the start of the war in Iran – has not allowed rates to rise to the full announced GRI or various surcharge levels.

The next significant rate increase across these lanes could come with the start of peak season in June or July, though some observers warn that war-related rising costs for consumers could dampen shipper expectations and depress peak season volumes.

Containers continue to move to and from the Gulf states via the alternative routes developed since the Strait of Hormuz closure. But even with significantly lower volumes booked, the network is straining, with Maersk reporting that Gulf export containers are facing particular challenges. Even as import containers also face delays and high costs, Gemini is increasing capacity to Saudi Arabia’s Jeddah Port.

In air cargo, more carriers have recently announced jet fuel cost-driven flight cancellations. In addition to Lufthansa scrapping its domestic Europe short-haul CityLine service – eliminating 20k flights through October – KLM will cancel some domestic flights, though both carriers say the cancellations represent a very small share of their overall network. United Airlines is rolling out a market disruption fee for cargo bookings.

Jet fuel supply is already getting tight in Southeast Asia, with K+N reporting it is adding fueling stops in China where supply is so far unconstrained before transiting to SEA countries. European Union officials recently met to discuss the looming prospect of jet fuel shortages, and may be considering a jet fuel sharing plan if supply gets really tight.

Despite these cancellations though, overall global air cargo capacity that had dropped sharply in March may now be at only a single digit deficit compared to before the war as Middle East carriers continue to rebound. Other global carriers have also shifted capacity to follow the war-driven shift in volumes to alternative Asia – Europe and other lanes.

These capacity additions, as well as moderate recent decreases in jet fuel prices may be contributing to the continued leveling off of rates on major lanes. The Freightos Air Index global benchmark remains 30% higher than before the war and year-on-year, but has been about level since the start of the month.

China – Europe rates at $5.07/kg and China – N. America prices of $6.40/kg both dipped slightly last week, with S. Asia – Europe rates also down 1% to $4.94/kg. SEA – Europe rates meanwhile climbed 9% to $5.24/kg, though remain a little below its year high of $5.30/kg hit earlier this month.

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Judah Levine

Head of Research, Freightos Group

Judah is an experienced market research manager, using data-driven analytics to deliver market-based insights. Judah produces the Freightos Group’s FBX Weekly Freight Update and other research on what’s happening in the industry from shipper behaviors to the latest in logistics technology and digitization.

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The post Transpac ocean rates continue to edge up on Iran pressure – April 28, 2026 Update appeared first on Freightos.

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