Shanghai: Freight rates due to the backlog of goods in airport warehouses have reached a record high for the same period
A logistics and warehousing area near Shanghai Pudong International Airport, with a warehouse area of 15,000 square meters, is currently fully filled with goods, waiting for export, and has been piled up to the outer edge of the warehouse. According to the staff, this state of margin call has persisted since mid-August until now.
The person in charge told the reporter that the current self-owned warehouses are not enough and some temporary warehouses have been rented. In addition, nearly half of the goods have been gradually transferred to other domestic airports recently, making it extremely difficult for shippers to book space. Miss Cao is a booking specialist at a freight forwarding company in Shanghai. She called the airline and wanted to book with American Airlines
For the cabin space of the line, we want a 12-ton cabin space for the weekend. The other party said they couldn't guarantee even half of it and could only offer one third.
In addition to the tight space, air freight rates have also seen a significant increase. Journalists have learned that the freight rates offered by freight forwarders to downstream shippers vary depending on the scale of their cargo volume and the mode of cooperation. According to the data from various freight forwarders, freight rates on all routes have generally risen recently, with some increasing by one or even several times.
Chen Bo, senior route manager of a freight forwarder company in Shanghai, said: "Since mid-August, global flight prices have generally increased, especially on European routes. About 50 flights have been reduced, and the freight rate has risen from 30 yuan per kilogram to 55 yuan per kilogram, an increase of about 70% to 80%."
Zhao Chao, a senior analyst of the transportation industry at Changjiang Securities, said: "Take the China-Us route as an example. The freight rate was about 4 US dollars per kilogram in August 2018, but it rose to 8.5 US dollars per kilogram in August." That is to say, the freight rates in August this year have increased by approximately 60% to 70% compared with the historical peak.
The airport loading and unloading turnover rate has decreased, and many airlines have reduced their flights
Since the first confirmed case of COVID-19 was reported at Shanghai Pudong Airport in mid-to-late August, the airport's international passenger and passenger-to-cargo flights were temporarily suspended, resulting in a significant reduction in capacity. What are the core reasons for this round of fluctuations in air cargo transportation? What will be the trend of freight rates in the future?
In August, as the Delta variant spread, in accordance with the Civil Aviation Administration's prevention and control policies, international cargo transportation must achieve "two concentrations", that is, airports involved in high-risk flight support must have the relevant working areas concentrated and the residences of relevant operation personnel concentrated. It is learned that Pudong Airport has set up staff prefabricated houses.
On August 20th, Pudong Airport reported confirmed cases. Currently, the airport is implementing a centralized closed-loop system with rotational duty, which has led to a reduction in frontline staff and a decrease in the airport's loading and unloading turnover rate, further exacerbating the tight capacity. According to industry insiders' estimates, the number of international cargo flights at Pudong Airport has decreased by more than 30% recently.
Meanwhile, many domestic and foreign airlines have reduced or even suspended flights on some routes. Some shippers have indicated that the routes between Japan and South Korea are currently largely suspended.
Analysts say that although the epidemic has been effectively controlled, the airport's prevention and control policies are likely to remain strict. In addition, October is about to enter the peak season for electronic product shipments, and the situation of tight transportation capacity and high freight rates may continue.
Zhao Chao, a senior analyst of the transportation industry at Changjiang Securities, said: "In the short term, due to the withdrawal of some capacity from the market, demand has been somewhat suppressed. In the later period, the release of this demand and the fact that the second half of the year is a relatively prosperous time for air cargo transportation, we believe that this may further push up the freight rate level."
In Kunshan, Jiangsu Province, the logistics costs of downstream enterprises have significantly increased due to the switch from air transportation to land transportation
Generally, the transportation of electronic products, medical supplies and dangerous chemicals all needs to be carried out by air. Recently, the shortage of air transport capacity and the soaring freight rates have also brought difficulties to downstream enterprises. Kunshan, Jiangsu Province, is a gathering place for electronic enterprises in China, and a large number of enterprises have been affected.
Ase is the world's largest wafer packaging and testing company. At its Kunshan factory, the person in charge told reporters that 70% of the raw materials and equipment needed by the factory rely on imports. Since the outbreak of the epidemic in August, air transportation at Pudong Airport has been blocked. Currently, many goods need to be transferred, and the freight cost is four times that of the original, and the transportation time has also been extended by more than double.
Zhong Hongru, the person in charge of the Kunshan factory of a certain wafer packaging and testing enterprise, said: "Currently, most of the goods are flown by air to South China, including Hong Kong, Shenzhen and Guangzhou, and then delivered to the company by land." I feel extremely pressured. Firstly, freight rates have risen. Secondly, the prices of raw materials have gone up. The greater cost lies in the delay of delivery.
At another large notebook computer contract manufacturing enterprise, the reporter learned that the upstream raw materials of the enterprise involve dangerous goods such as batteries. However, due to the fact that air transportation of dangerous goods requires more space, airlines have currently suspended the transportation of dangerous goods, which has greatly affected the enterprise's production capacity. In terms of shipment volume, it is due to the inability to place an order
The shipping capacity in August was only 30% of the original plan.
A reporter learned from Kunshan Customs that recently, dozens of local enterprises have been forced to switch to land transportation. The customs has cooperated with the local government to develop an online platform to help enterprises consolidate their goods, coordinate various enterprises and logistics vehicles, and improve transportation efficiency. In August, the volume of land transportation of goods increased by two times compared with the previous month.
Note: this article reprinted in China logistics website (https://www.shippingazette.com/menu.asp?encode=gb)
Service
阿里旺旺
Skype
MSN
19925337349 
