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“ Air freight fares '' are rising due to the reduction of passenger flights due to the spread of the new coronavirus


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“ Air freight fares '' are rising due to the reduction of passenger flights due to the spread of the new coronavirus


New type coronavirus infection (COVID-19)Due to the spread of the epidemic, measures have been taken to restrict the movement of people around the world, such as restrictions on travel and blockade of cities. Along with this, the number of tourists and businessmen using airplanes has dropped sharply, while air freight rates have been reported to have risen sharply.

Air freight rates skyrocket amid passenger flight cuts, Chinese factory restarts-Reuters
https://www.reuters.com/article/us-health-coronavirus-airlines-freight/air-freight-rates-skyrocket-amid-passenger-flight-cuts-chinese-factory-restarts-idUSKBN20Y062

Air freight prices jump ‘by more than a third 'as airlines use passenger space to carry cargo-The Institute of Export and International Trade
https://www.export.org.uk/news/498048/Air-freight-prices-jump-by-more-than-a-third-as-airlines-use-passenger-space-to-carry-cargo. htm

‘Absolutely Crazy’ Air Cargo Fees Highlight Supply-Chain Squeeze-Bloomberg
https://www.bloomberg.com/news/articles/2020-03-30/-absolutely-crazy-air-cargo-fees-highlight-supply-chain-squeeze

Airlines have been forced to refrain from traveling overseas due to the outbreak of the new coronavirus infection,September 11 attacks in the United States (9.11)It is reportedly suffering more damage. The number of flights has been significantly reduced due to a decrease in travel demand, and some airlines have decided to temporarily dismiss many employees.

Each country announces support to the aviation industry as “ the damage to the aviation industry due to the new coronavirus is worse than 9.11 ''-gigazine

The decrease in air traffic due to a decrease in the number of travelers has had a significant impact on the transport of air cargo. Half of the world's air cargo is transported around the world in dedicated luggage compartments rather than dedicated cargo flights. However, the reduced number of passenger aircraft has significantly reduced the amount of air cargo that can be transported with passenger aircraft. Shipping companyAgility LogisticsStates that China's ability to transport air cargo has dropped by 39%, following a fall in passenger traffic in February.

With the decline in transportation capacity, airlines are working to increase cargo transportation capacity by loading cargo into the space where passengers normally sit.Air France-KLM-Martin Air Cargo,Lufthansa,United airlines,Delta Air Lines,Cathay Pasific AirlinesIt seems that airlines such as are carrying priority cargo including medical supplies in the passenger seats and storage space and transporting the maximum amount of cargo.

However, despite the efforts of airlines, the reduction in transportable capacity is causing freight rates to increase. Provide international air cargo price informationTAC Indexaccording to,Shanghai Pudong International AirportFromLondon Heathrow AirportAir freight prices to Japan rose 35.2% in the week of late March 2020.

It seems that the rise in air cargo fare due to the collapse of passenger demand seems to have never been experienced before, and it is said that the air fare changes drastically every hour. The following graph created based on the data of the TAC Index shows the upper and lower width (%) of the air cargo fare based on October 7, 2019, and the blue line is from Shanghai to North America, Green represents air freight from Shanghai to Europe, red represents Hong Kong to North America, and black represents air freight from Hong Kong to Europe. From the graph, it can be seen that the air freight rate increased from October 7, 2019 to November, and gradually declined toward the end of February. However, freight rates have risen sharply since the end of February, when the spread of new coronavirus infections worldwide and passenger flights began to decline. In particular, flights from Shanghai to the United States and Europe show that air freight fares have increased by more than 60% compared to October 7, 2019.

In addition, the price of charter aircraft that transports air cargo as well as regular cargo flights has increased significantly. Logistics companyPacific AirAnthony Lau, chairman of the company, said in an interview on March 27, “ The price of the charter aircraft was less than $ 300,000 four to six weeks ago, but in the past few days it has been $ 600,000 ( From about 65 million yen) to 800,000 dollars (about 86 million yen). " "This is absolutely crazy," Lau complains about the sharp rise in prices.

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