Air freight rates skyrocket following demand for aid in the Corona virus epidemic

Air freight rates are rising sharply on the East-West main routes due to emergency shipments to China filled with medical supplies and aid goods after the order to suspend most passenger flights. in the context of the outbreak of Corona virus (COVID-19).

The rents for a trans-Pacific freighter are usually around US $ 400,000, but last week increased to US $ 800,000 for a one-way flight. At the same time, the price of hiring freight planes from Europe to China has increased by nearly 200% from a week ago, according to Freight Investor Services (FIS).

A large amount of air transport capacity has been declining in the market due to the suspension of passenger flights to China from around the world, believed to have affected more than 70 airlines. That quickly increased the demand for chartered aircraft carrying almost all relief goods and medical supplies.

FIS stressed that in the weekly updated newsletter on Monday, the Frankfurt-Shanghai freight charge was up to US $ 2.78 / kg, up 193% from a week ago. The surge in demand for full-package subscriptions is clearly reflected in the boom in the number of charter flights from Europe to China.

"We can assume that a large portion of this cargo volume will be relief cargo, and the shipping cost will be charged to the shipper with one party," FIS said. "Meanwhile, the full price for a trans-Pacific route was between 500,000 and $ 800,000 for a one-way flight last week."

Reto Hunziker, freight director at flight charter company Chapman Freeborn, confirmed that the demand for air transport from Europe to China has increased and will increase sharply in the near future.

We think this will happen until April, or even mid-year, Hunziker shared with JOC.com. Then once China starts working again - factories, infrastructure, etc. - We believe transport demand from China to both the EU and US regions will increase.

Ronald Lam, director of customer and commerce for Cathay Pacific Group, said the volume of goods in January dropped by nearly 9% from the previous year, according to what he described as the "Lunar New Year period. the most falls we have ever experienced ”.

Lam said the company saw a very good level of transport demand on the routes during the first three weeks of January, with sales in China recorded a strong annual growth.

"However, in the last week of January, demand dropped sharply when manufacturing was stalled in mainland China during the Chinese New Year holiday," Lam said in a January activity report. Cathay Pacific. "The delay in post-Tet production recovery across mainland China has significantly affected both our Hong Kong and mainland China markets."

Phaata (Source: JOC)

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