Sharechat Logo

Urgent Demand for Medical Equipment Is Making Air Cargo Fees ‘Absolutely Crazy’

Tuesday 31st March 2020

Text too small?

Urgent demand for medical equipment to fight the coronavirus has sent the cost of chartering aircraft skyrocketing and turned a typically humdrum process into an ultra-competitive auction.

“Chartered prices have been pushed up from less than $300,000 four to six weeks back to $600,000 to $800,000 in the last few days,” Anthony Lau, chairman and founder of logistics company Pacific Air (HK) Ltd., said in an interview Friday. “It is absolutely crazy.”

“The price is changing by the hour. We have never, ever experienced this.” -- Anthony Lau.

An unprecedented collapse in passenger demand is prompting airlines to use their fleets to transport more cargo, including medicines, as the coronavirus pandemic causes major disruptions to supply chains and exacts a heavy toll on the world. Infections globally have climbed above 720,000 and about 34,000 people have died from the virus.

The likes of Cathay Pacific Airways Ltd., Korean Air Lines Co. and American Airlines Group Inc. are hauling a greater amount of goods in the bellies of their passenger planes to keep up with demand. Cargo rates have risen over 10% in recent weeks.

Source: Bloomberg



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax
U.S. Can Destroy Huawei, Part Two
Green Recovery Could Create 850,000 British Jobs, Report Finds
RBNZ Warns Banks’ Ability to Absorb Shocks ‘Is Not Unlimited’
Trustpower makes solid progress in challenging year
Air New Zealand liquidity and 2020 earnings update
THL begins New Zealand Restructuring process
The customer is always right
The modern era of globalisation is in danger

IRG See IRG research reports