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, reports Bloomberg
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 US$3.53 per kilogramme.
As US companies like Crocs, Nike and Levi Strauss pay premiums to import their goods on planes, the boom in airfreight 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.
Some experts warn that some demand for cargo-only planes could disappear as long-haul passenger aircraft return, restoring capacity to the system. But plane makers are banking on the cargo craze to continue to drive freighter demand.
Boeing and Airbus are looking for customers for cargo-only variants of their largest models, which they say will offer better fuel efficiency and lower emissions than existing aircraft.
Meanwhile, aircraft lessors are looking to repurpose their oldest aircraft for cargo use as airlines retire them in favour of the latest models. This month, Avolon said it will work with Israel Aerospace Industries to convert 30 Airbus SE A330 wide-bodies for cargo use.
SeaNews Turkey
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 US$3.53 per kilogramme.
As US companies like Crocs, Nike and Levi Strauss pay premiums to import their goods on planes, the boom in airfreight 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.
Some experts warn that some demand for cargo-only planes could disappear as long-haul passenger aircraft return, restoring capacity to the system. But plane makers are banking on the cargo craze to continue to drive freighter demand.
Boeing and Airbus are looking for customers for cargo-only variants of their largest models, which they say will offer better fuel efficiency and lower emissions than existing aircraft.
Meanwhile, aircraft lessors are looking to repurpose their oldest aircraft for cargo use as airlines retire them in favour of the latest models. This month, Avolon said it will work with Israel Aerospace Industries to convert 30 Airbus SE A330 wide-bodies for cargo use.
SeaNews Turkey
