FedEx CEO: No Impact on Air Freight From Red Sea Disruptions Yet

FedEx CEO Raj Subramaniam said the carrier hasn’t seen higher demand for air freight from global shippers looking to divert goods from ocean shipping due to Houthi attacks on commercial vessels at the Red Sea. The ships can still travel via an alternative and longer route via the Cape of Good Hope, he said, adding that ocean shipping rates have risen. There has been no change to air freight rates due to the Red Sea disruptions. Subramaniam added that 90% of global shipping freight travels by ocean and 10% by air, and just a small diversion will make a big difference to air freight.

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