Covid-19 scare continues to slow airlines from adding capacity
THE Covid-19 pandemic continues to hurt airlines, as the outlook for economic recovery is more pessimistic than ever, according to New York's FreightWaves
THE Covid-19 pandemic continues to hurt airlines, as the outlook for economic recovery is more pessimistic than ever, according to New York's FreightWaves.
Manufacturers and other shippers are experiencing difficulties with the Covid-19 era of airlines as transport prices continue to rise.
Passenger airlines are seeing a massive second quarter loss, resulting in layoffs and slowing the reintroduction of flights as Covid-19 cases flare-up.
Fewer flights equal fewer transport options for shippers who are already facing a supply shortage. However, freighter friendly airports are doing okay while having more business than they can handle.
Cargo capacity in June was 34 per cent below the 2019 level, according to the global trade association representing airlines. The association also added a year to its timeline for when airlines can reach full strength.
On a brighter note, air freight rates have been rising in Asia for the past three weeks. There was an 8.6 per cent increase in air cargo prices from China to the US, which is averaging US$5.16 per kilogramme.
Meanwhile, spot market rates have increased by 18 per cent, and the China-to-Europe rate ticked up a half-point to $3.29. However, the outbound rate from Europe to the US blundered 3.4 per cent after staying level the previous two weeks.