Some flights will cost over $3 million to charter
Shipping companies have started leasing air cargo planes in bulk for a single flight as the shipping crisis is getting worse.
Trans-Pacific charter company Air Charter Service reported that the Boeing 777 flight is going for at least $2 million. The peak price before the pandemic was around $750,000.
Some companies have reported rates close to $3 million for flights out of Vietnam, insider informed of. The Southeast Asian country serves as a major manufacturing base for clothing, footwear and electronics.
Usually about 90% of the world’s trade freight travels via sea freight due to its cheaper cost, but delays have forced companies to find alternatives. Even Amazon is reportedly looking to buy secondhand cargo jets to reduce shipping delays on its own.
Buttigieg says supply chain crisis ‘will continue next year’
“We’re chartering like crazy,” said Mark Schlossberg, executive director of air cargo at Unique Logistics. american shipper.
There are shipping delays and cargo piling up at California ports. Thousands of containers are stuck at the ports of Los Angeles and Long Beach in California, which transfer more than a quarter of all U.S. imports, according to The Wall Street Journal, which noted last month that dozens of ships were to dock. has been prepared. With wait times up to three weeks.
Former Walmart CEO: How Biden’s supply chain is ‘messy from start to finish’
Sarah Gallica, Vice President of Transportation for Home Depot magazine That the idea of using a private charter started out as a joke. In May, someone said, “Let’s just rent a ship” to get stuff done faster: Now, the company is renting ships and planes trying to avoid further delays.
Those delays have traditionally spread to commercial airports with strong freight traffic – such as Chicago’s O’Hare, Los Angeles, Dallas-Fort Worth and New York’s JFK – which are incredibly crowded due to workforce shortages. , which has added delays ranging from three days to two. Weeks to make the shipment available to the terminals.
Get Granthshala Business on the go by clicking here
“October is probably going to be one of the worst months [ever] In terms of airfreight transportation for the shipping community,” said Edward DeMartini, vice president of air logistics development for North America at Kuene + Nagel.