Air Cargo Rates Surge... China-US Prices Triple in Two Weeks

[Image source=Reuters Yonhap News]

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Due to the spread of COVID-19, air routes involving China have been drastically reduced, and as Chinese factories resume normal operations, air cargo transportation fees are soaring.

According to the TAC index, an air cargo freight rate index, on the 11th, air cargo transportation fees between China and the United States have tripled in the past two weeks, sharply rising to about $3.50 per kilogram. FIS, which publishes the freight index, also reported in its latest rate notice sent to customers that air cargo transportation fees between China and the U.S. have become abnormally high, and intra-Asia rates have increased by 22% compared to the previous week.

The Hong Kong South China Morning Post (SCMP) interpreted this sharp rise in air cargo transportation fees as potentially beneficial to airlines with a high proportion of cargo transport, such as Korean Air, Cathay Pacific, and ANA Holdings. It also reported that airlines can offset losses caused by the sharp decline in passengers due to the spread of COVID-19.

The sudden surge in air cargo transportation fees is due to a significant reduction in passenger flights caused by the spread of COVID-19, and the recent efforts to normalize China's economy, with factories resuming operations, leading to an increase in cargo volume originating from China.

The Chief Financial Officer of German logistics company DHL recently stated that as Chinese cargo recovers, they are deploying their cargo planes on those routes, but it is difficult to secure additional cargo planes. Cargo operator Agility also reported on its website that air cargo space has decreased by 39% compared to last year due to the suspension of passenger flights.

This content was produced with the assistance of AI translation services.