The cost of air freight soars in rush to speed holiday goods
With the world’s ports, rail yards and truck depots jammed up with holiday merchandise, the relentless demand for goods and limited capacity to ship them is pushing the price of the fastest and most expensive form of transportation to new heights. The rate to fly goods to Europe from Hong Kong hit a new record this week and the cost of air freight to North America from Hong Kong is staying elevated around a peak reached a month ago, according to the latest TAC Index. Freightos.com just launched an Air Index based on cargo transactions and its latest readings also reflect surging prices. Spot prices from Germany to China, for instance, have more than doubled in the past three months to $3.53 per kilogram. As US companies like Crocs, Nike and Levi Strauss pay premiums to import their goods on planes, the boom in air freight has been the sole bright spot for the global aviation industry as Covid-19 travel restrictions and lockdowns curb passenger travel. But even as people slowly start flying again, spurred by rising vaccination rates, demand for air cargo continues to surge, driven by e-commerce and an ongoing global supply chain crisis on the ground.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2021-10-20/general/the-cost-of-air-freight-soars-in-rush-to-speed-holiday-goods
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The cost of air freight soars in rush to speed holiday goods
With the world’s ports, rail yards and truck depots jammed up with holiday merchandise, the relentless demand for goods and limited capacity to ship them is pushing the price of the fastest and most expensive form of transportation to new heights. The rate to fly goods to Europe from Hong Kong hit a new record this week and the cost of air freight to North America from Hong Kong is staying elevated around a peak reached a month ago, according to the latest TAC Index. Freightos.com just launched an Air Index based on cargo transactions and its latest readings also reflect surging prices. Spot prices from Germany to China, for instance, have more than doubled in the past three months to $3.53 per kilogram. As US companies like Crocs, Nike and Levi Strauss pay premiums to import their goods on planes, the boom in air freight has been the sole bright spot for the global aviation industry as Covid-19 travel restrictions and lockdowns curb passenger travel. But even as people slowly start flying again, spurred by rising vaccination rates, demand for air cargo continues to surge, driven by e-commerce and an ongoing global supply chain crisis on the ground.<br/>
