Shipping congestion, epidemic, high demand! Air transport into "sweet property"
Ports around the world are jammed and freight costs are rising as they try to meet soaring consumer demand ahead of Christmas. Mr Biden's plan to rescue Christmas supplies by clearing the ports of Los Angeles and Long Beach, California's two main gateways, seems to have failed, with congestion continuing. The average waiting time for a container ship to enter the two ports is now about 21 days, or three weeks, compared with about seven days in August.
Earlier, the head of the port of Long Beach, one of the nation's busiest, said he expected congestion, a major contributor to supply chain disruptions in the United States, to ease in about six months.
It is understood that some IMPORTERS in the United States have switched from shipping by air to shipping by sea to ensure their goods are on shelves in time for the holiday shopping season. However, air freight to and from major Asian routes has doubled in the past three months, according to statistics.
Told the financial times reported that flights from Shanghai to the north American air freight prices reached $14 per kilogram (about 89 yuan) a record, far higher than that of the end of August 8 per kg in us dollars ($51 yuan), the current price is more refreshed the outbreak of the new champions league earlier $12 per kilogram (RMB 76) record. But the extra cost of air freight could weigh on consumers through inflation.
Said Yngve Ruud, global head of air cargo at Kuehne+Nagel, one of the world's largest freight forwarders. "The market expects the peak season and air cargo market demand to continue until March next year," said a freight forwarder.
According to financial Times analysis, there are many reasons for the soaring air freight prices:
The first is the global shipping jam, which has led many businesses to take to the air to transport products such as fashion goods, consumer electronics and components.
Second, the widespread spread of the omicron strain has created a global demand for COVID-19 testing kits and personal protective equipment.
Finally, the global supply chain is extremely busy because of holidays such as Black Friday and Christmas in the west.
It is understood that some airlines have switched to air freight, while logistics companies such as fedex and DHL are also filling some of the gap to fully cope with the growing demand for this convenient but expensive service.
The airline industry is still running 13 percent below 2019 capacity, while demand is up 6 percent over the same period, creating a gap of nearly 20 percentage points between supply and demand, said Marco Bloemens, head of freight consulting at Accenture's Seabreys. According to the latest statistics and analysis, the current supply chain chaos may not ease until the second half of 2022
