To Our Valued Customers:

 

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

Air Rates Continue Slide but Perhaps Not for Long: Transpacific-eastbound rates have decreased another 10%, on average, over the past couple of weeks. Shanghai has seen a drop in market rates by nearly $0.60 per kilogram. However, as businesses continue to ramp up import orders, rates have stalled going into week 26. Additionally, carriers have begun to remove CAO aircrafts from service, as PPE demand weakens, resulting in a drop in available capacity. As for U.S. outbound, as passenger services continue to be reinstated by most carriers this month, improved pricing on export air shipments is expected.

 

Soft Lockdown in Beijing Affecting Food & Medical Products: Due to a spike in Covid-19 cases in Beijing, the Chinese government has placed a level 2 lockdown in the region. Food and medical products are not being released by customs at the moment, therefore any shipments of such should not be shipped to this destination without further review. As for general airline operations, initially there was little impact but recent developments are showing that cargo services are on track for severe disruption. Most larger shipments may need to consider alternative airports.

 

U.S. Puts Stop to Additional Flights from China: The US Department of Transportation (DOT) rejected an increase in weekly flights, to/from the USA, by Chinese airline carriers. The move was in response to China’s reluctance to lift limitations on U.S. flagged carriers’ flight plans. The position would be reconsidered if the CAAC would first soften their own aviation policies.

 

Airport Terminal Woes Continue as Handling Charges Rise: Freight availability delays, lost and damaged cargo, and long truck lines are becoming to look like the “new normal”. Air exports are impacted as well as some carriers have implemented earlier freight cutoff times for departing flights. The issues are originated by staff shortages and operational difficulties caused by new procedures. As if these pains were not enough, many terminals have instituted a Covid-19 surcharge.

 

Yangtze River (Y8) Announces New Service from ORD: Y8 Freighter service is now available four times per week, direct from ORD to PVG. The flights depart on Mon, Wed, Thur, & Sat at 12:20 am. Arrival in Shanghai is 05:30 on the following day.

 

Great spot rates are available during the inauguration of this flight. Please contact lgiairquotes@laufer.com.

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