Let’s take a dive into how the world of air freight is being affected by our current events, especially with the impact of the COVID-19 pandemic…

Large Players in Air Freight Are Trying to Make Room

FedEx, one of the major providers in logistics, is in the process of opening four new intercontinental flights from China, and they’re also looking to further improve their existing flights to the European continent as well as to other parts of Asia. This is important because of China’s role in supplying supplies and materials to North America for innumerable businesses. As the global economy continues to recover, Chinese factories will be generating goods and supplies at even greater speeds—but without the planes to fly those goods, the process will stall.

FedEx isn’t the only one trying to increase their transport capacity to meet the rising demand. SF International is also trying to handle the rising demand. But there’s something that all logistics providers are having to deal with: Rising rates and not enough transport capacity. As demand rises against the existing capacity for air freight, rates will only continue to rise, and delays will be more frequent.

Every Disruption Affects Things “Made in China”

With the struggle to find more transport capacity, any and all goods that need to move overseas to reach North America will likely be seeing delays for some time. It goes beyond just having the capacity to fly or ship packages, the rise in rates plays a role in how much can be afforded to be moved at a time. Every component in the process affects the rest. Both air freight and sea-bound freight are being affected by this, with some experiencing rates as high as five-times more than usual because of the rising demand.

The best remedy for this matter will likely be time. Even if more planes or ships were to be built in a matter of weeks, it would also require ports and airports to increase their capacity to accept and unload those freight vehicles. There will be no easy solution to meeting the freight shortages that we’re experiencing, and the supply shortages that are happening consequently.

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