- Crane Worldwide Logistics will likely adjust their schedules at the last minute without notice.
- Chinese carriers to/from Los Angeles, Chicago, and Amsterdam, Qatar Airways has canceled PVG flights from 31 March until 5 April.
Simultaneously cancel flights from Shanghai
On March 28, Cargolux announced that it would suspend flights from PVG at least until April 2. According to Crane Worldwide Logistics, other airlines are monitoring and will likely “adjust their schedules at the last minute without notice”.
Along with that, Crane said that there had been a raft of further cancellations from Chinese carriers to/from Los Angeles, Chicago, and Amsterdam, Qatar Airways has canceled PVG flights from 31 March until 5 April, as has Turkish Airlines until Saturday, while Singapore Airlines has also canceled the majority of flights until Saturday.
Rates continue to fluctuate
Canceling flights from Shanghai means airlines have to divert their goods to alternative border gates. This is likely to increase air freight rates.
Grant Liddell, CEO of Metro Shipping, a UK freight forwarding business, said: “Delivering goods to other airports is often more expensive for road freight and air freight, due to That adds to the overall shipping time.”
According to data from the TAC Index, airfreight rates from China flattened in the past week, having rallied from a three-month low at the start of March. The index shows China-US rates at $8.54 per kg, up 0.2% week on week, but up 22% compared with $6.97 on 7 March. For China-Europe, rates are $7.27, down 1.5% this week, but up from the $6 three weeks ago.
What’s the problem?
According to Peyton Burnett, CEO of TAC, a business that provides air freight pricing information, there are two pricing dynamics at play.
“Fuel is going up a lot, which is pushing prices up,” he explained. Shippers are now being pushed to accept fuel surcharges again, and so they scrapped their old contracts over eight years ago to look at different fuel surcharge terms.”
On the other hand, Mr. Burnett said, China’s zero-covid policy is putting downward pressure on freight rates due to the impact on domestic production and transportation.
Air freight rates are at a record high during the Christmas season