Air freight rates from China to Europe had tripled or quadrupled since the delayed reopening of factories after Chinese New Year, the Covid-19 crisis has led to a spike in air freight demand the drastic reduction of scheduled flight capacity led by airlines.
As Coronavirus has permeated throughout the major economies of the world, a bizarre situation has unfolded, whereby air freight importers are now reviewing and cancelling air freight orders as rates spiral upwards.
Rates can increase substantially in the time it takes the customer to decide whether or not they are willing to pay the increase, often very substantially.
The dilemma that the airfreight customer faces, of course, is that its own customer may not be willing to pay the increased charge. And of course, no one can even begin to guess what next week sales figures are likely to be are, still less next month’s.
Customer who normally paid between $4-5 per kilo and during these crisis are urged to pay $16 per kilo.
As a freight forwarder and customs clearance agent we are facing unprecedented challenges to get orders while we are working hard to keep our logistic supply chain flowing.
