What is the current impact of COVID-19 on Air Cargo?
With the Holiday season about to kick-off, import volumes are getting higher as retailers replenish inventory in expectation of this year’s seasonal wave builds. The rapid growth of eCommerce and peak shipping season are contributing to record freight rates that are not expected to drop any time soon. In addition, the sprint for a vaccine is also warming up, and its global rollout will be the next major challenge to our national supply chain stability.
Therefore, these factors along with high ocean rates and COVID-19 related delays are driving demand for air cargo and contributing to a continued increase in air freight rates. For example, in October 2020 rates out of China have gone up on average and are now at about 40% of their May peak. Do not expect the air cargo rates to descend since capacity is still constrained by a lack of passenger flights but are not expected to reach the extreme peaks seen before June.
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