Shippers are merrily switching modes, back to sea freight, as ocean congestion ends and rates fall, but they are continuing to book at least some air capacity for next year.

In last week’s earnings call, TJ Johnson, CFO of Victoria’s Secret, said the company would save millions in supply chain costs by switching modes.

“As we move into the fourth quarter, given that both ocean and air rates have now moderated significantly … we’ve been able to take merchandise off airplanes, which is a good thing for the business.

“We believe we’ll recognise about $65m of good news, or lower supply chain costs, in the fourth quarter, and think that number gets probably closer to about $100m as we move into the spring season.

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