RUSSIAN airlines have been banned from EU and North American airspace, with Moscow returning the favour, causing air cargo rates to further skyrocket on top of stricter China Covid crisis lockdowns, reports IHS Media.
Rates are up 30 per cent to North America and 22 per cent to Europe.
'A stressed system has now taken on even more stress,' said The International Air Cargo Association (TIACA) director-general Glyn Hughes.
Rates from Shanghai to North America jumped 28.7 per cent to US$9.65 per kilogramme recently.
The rate from Shanghai to North Europe increased 22.5 per cent to $7.20/kg, the highest since early January.
Rates to both North America and North Europe are up 85 per cent year over year.
Meanwhile, China's Covid crisis lockdown in Shenzhen until late last week restricted trucking from entering the city, meaning only air cargo located in Shenzhen could be transported to the airport.
However, most factories in Shenzhen and Dongguan are closed.
Said Geodis managing director Chris Cahill: 'The Shenzhen area, including factories and all non-essential activities, are completely closed, and this includes most of Dongguan. Cargo cannot originate or terminate in these areas,'
Mr Cahill declared air cargo originating or ending outside of the lockdown areas were being transported through other gateways.
Said Freightos head of research Judah Levine: 'Tight capacity and rising fuel costs resulting from the war had already been pushing air cargo rates up, with Freightos Air index Shanghai-US East Coast rates climbing to more than $16/kg last week, a 42 per cent increase so far this month,' he said in a market update.
'Rates from Europe to Asia are also rising, with prices from Frankfurt, for example, increasing 17 per cent to Shanghai and 110 per cent to Hong Kong as it struggles with its own surge.'
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Rates are up 30 per cent to North America and 22 per cent to Europe.
'A stressed system has now taken on even more stress,' said The International Air Cargo Association (TIACA) director-general Glyn Hughes.
Rates from Shanghai to North America jumped 28.7 per cent to US$9.65 per kilogramme recently.
The rate from Shanghai to North Europe increased 22.5 per cent to $7.20/kg, the highest since early January.
Rates to both North America and North Europe are up 85 per cent year over year.
Meanwhile, China's Covid crisis lockdown in Shenzhen until late last week restricted trucking from entering the city, meaning only air cargo located in Shenzhen could be transported to the airport.
However, most factories in Shenzhen and Dongguan are closed.
Said Geodis managing director Chris Cahill: 'The Shenzhen area, including factories and all non-essential activities, are completely closed, and this includes most of Dongguan. Cargo cannot originate or terminate in these areas,'
Mr Cahill declared air cargo originating or ending outside of the lockdown areas were being transported through other gateways.
Said Freightos head of research Judah Levine: 'Tight capacity and rising fuel costs resulting from the war had already been pushing air cargo rates up, with Freightos Air index Shanghai-US East Coast rates climbing to more than $16/kg last week, a 42 per cent increase so far this month,' he said in a market update.
'Rates from Europe to Asia are also rising, with prices from Frankfurt, for example, increasing 17 per cent to Shanghai and 110 per cent to Hong Kong as it struggles with its own surge.'
SeaNews Turkey