More shippers are considering switching from air to ocean shipments in the current climate of higher jet fuel costs, according to one logistics company.
Matson Logistics saw air-to-ocean freight movement in the first quarter of the year and expects to see more cargo shift modes going forward, stated the company in its first quarter 2026 earnings call, first reported by Supply Chain Dive.
The company, which offers rail, road and ocean transport, alongside supply chain, logistics and warehousing services, saw “continued air-to-ocean freight conversions” in the first quarter, said Matthew Cox, chairman and chief executive.
Cox said: “With respect to air-to-ocean freight conversions, we benefited from elevated freight costs and reduced air cargo capacity in select markets.”
Air to ocean shifts, and vice versa, are not a new trend in the logistics space, and Cox indicated that Matson specifically had benefited from air to ocean movement of shipments since before the Middle East conflict and Strait of Hormuz-related fuel price rises occurred in the first quarter.
“I think what we have heard from our customers is, although we have been mentioning this airfreight conversion for the last couple of years, given this expedited space that we created, there’s been sort of a long term (sic).
“There are periods in markets where that growth trend would go up or go down. And we think we’re entering a period where we’re going to see more airfreight conversions, some of which will be temporary and some of which will continue to convert.
“I also think that the longer that energy prices — I’m sorry, energy prices and availability are issues, I think the air freight markets have been significantly dislocated and especially in places where they primarily import their jet fuel.”
Although, jet fuel prices may have prompted some shippers to consider ocean over air shipping, global air cargo rates have finally decreased following a series of increases since the start of the Middle East conflict, TAC Index reported recently.
