To Our Valued Customers:

 

The China to U.S. airfreight market continues to face turmoil as rate increases and lack of space see no end in sight. Freighter Charters are also, for the most part, fully booked until June leaving idle passenger flights as the only chartering service available. These conditions are now expanding beyond the borders of China and affecting Taiwan & Hong Kong much more this week than it has previously.

 

So here is a shortlist of what we are seeing so far this week:

 

No Let Down in Airfreight Rate Hikes: There has been almost another 10% increase in airfreight rates from China in the last week. Taiwan and Hong Kong are now feeling the effects as they have both seen rate increases of $3.00-$4.00 per kg. Expectations for China to USA are that west coast rates will rise to $18-$19/kg within the next week, and $20-$21/kg to the east coast.

 

Commencing tomorrow, 04/22, Laufer Group will be offering a series of ten (10) charter flights from PVG and HKG to LAX Airport. The series of flights will run until May 1st. We are expecting space to fill up quickly so please contact tmarano@laufer.com as soon as possible if you should be interested in this service.

 

Inspections at China-Hong Kong Border Intensify:  In an effort to implement tightened restrictions on the export of Personal Protection Equipment (PPE), the Chinese Government has ramped up extensive exams for goods crossing into Hong Kong. These exams have included complete physical inspections of all shipments containing, or expected to be containing, PPE items. Coupled with a spike of general cargo that is crossing the border in pursuit of better airfreight rates, delays into Hong Kong have increased significantly.

 

U.S.-Based Carriers Strip Seats for Cargo: In an attempt to ease pressure on capacity, as well as capitalize on the demand, U.S.-based carriers have been removing passenger seats from their flights and introducing regularly scheduled flights on certain trade lanes. This service is in addition to offering full chartering contracts and is giving customers a more familiar option for their smaller (not charter worthy) shipments.

 

Electronics Industry Shares Feedback on Current Airfreight Conditions: While there are many commodities moving by air at this time that normally never would have, electronics importers are no novice to airfreight transportation and are now proven to not be immune to current issues either. The IPC trade association has recently stated that their members are dealing with component shortages, abnormal shipping delays, and exorbitant costs. In some cases, it has been reported that cargo space is being lost to the highest bidder. 

 

The Airline Industry Makes Grim Prediction:  As reported by the International Air Transport Assoc. (IATA), the airline industry is expecting to lose $314 Billion Dollars in 2020, this is a loss increase of 25% greater than previously expected. United Airlines is expected to report a pre-tax loss of $2.1B for the first quarter alone.

 

 

 

 

 

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