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5 causes for air freight rates increasing rapidly in 2020

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5 causes for air freight rates increasing rapidly in 2020

As we all know logistics market is quite unsteady presently. Available shipping space is tight and rate increased sharply, even some airlines increase rates twice or three times a week. The main reason is a huge imbalance between the available capacity and demand. Locking the position as soon as possible is one of the best way to prevent the unstable price and position.

  1. PPE cargo replenishing due to the COVID-19.
  2. Affected by the epidemic and the economy, some goods are slow in customs clearance. Ocean shipping capacity decreased a lot. Some shipments are changed to go by air.
  3. As Christmas approaches, demand from the traditional peak season will not be reduced by the outbreak. It is a traditional peak shipping season since Oct. to Jan. Suppliers want to prepare enough goods before Christmas.
  4. E-commerce goods have exploded all around the world. Online shopping became an essential part of people’s lives during the epidemic. Some e-commerce goods choose to take air parcels or FBA to grab transport positions.
  5. Many new large cargo projects using charter flights in Europe and the US. APPLE, HUAWEI, XBOX, PS5 and some car companies have mass air shipments from China.

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