Air freight costs soar to record high

The cost of flying cargo around the world has reached record levels as companies attempt to meet surging demand in the run-up to Christmas. Prices have nearly doubled on key air freight routes linking manufacturing hubs in China to consumers in the US and Europe over the past three months, leaving the industry struggling to find enough aircraft to keep up. Prices on routes from Shanghai to North America reached $14 per kilogramme for the first time last week, up from $8 at the end of August and above the previous record of $12 achieved when the pandemic first hit supply chains in early 2020. There have been similar rises from Hong Kong to Europe and the US, and on the transatlantic routes between Frankfurt and North America, according to data from the Baltic Exchange Airfreight index and TAC Freight, cargo data providers. “Everyone knows if they want something on to the shelves before Christmas they have to use air freight,” said Yngve Ruud, head of global airfreight at Kuehne+Nagel, one of the world’s largest freight forwarders. Companies have been moving finished products such as fashion goods and consumer electronics by air, but also components including auto parts or semiconductors. There has also been a rush to order Covid-19 tests and personal protective equipment into Europe to deal with the Omicron coronavirus variant, according to industry executives.<br/>