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China's air freight prices will skyrocket

  • November 02, 2021

1. Serious sea congestion. Can air and rail work?


At present, the ports of Los Angeles and Long Beach are still heavily congested, with nearly 60 ships waiting to dock at the ports. In addition, the Christmas season is approaching, a large number of Christmas cargoes from China to Europe and the United States are still piled up in domestic warehouses, or remain in the port waiting to be loaded into containers, which cannot be completed warehousing. Sellers are turning to air and rail.

The rise of shipping logistics prices (Matson speculation to 40,000-60,000 DOLLARS), the delay of time, resulting in soaring demand for air delivery, express delivery and other channels, the freight has risen sharply, now the air delivery price exceeds 70 yuan /kg, some of the Us air freight prices even as high as 100 yuan /kg.

From the recent frequent inspections of major logistics operators and sellers, it can be seen that all parties still have expectations for china-Europe land transport. As an important supplement to the transport capacity of China and Europe, the transport capacity of China-Europe land transport is beyond doubt.



2. A large number of flights have been cancelled and air freight prices have soared


In addition, the 4th CIIE will be held in Shanghai from November 5 to 10, 2021. A total of 58 countries and three international organizations will participate in the national exhibition, and nearly 3,000 exhibitors from 127 countries and regions will present in the enterprise exhibition. This also means that Shanghai is about to enter a high standard fast pace tight state of preparation.
In aviation, many freight forwarders have received relevant notice: During the Expo, east China Administration decided not to allow new cargo package flights in Pudong, and cancelled a large number of flights.

Due to the impact of the epidemic, passenger planes did not recover in a large area, and cargo planes were the main force of freight, while pure cargo planes accounted for a small proportion. During the epidemic, passenger to cargo flights took up a large amount of transport capacity, and Shanghai Airport accounted for nearly 1/3 of the capacity.
Now due to the impact of the CIIE, the butterfly effect will certainly affect the price of the whole empty, and the shipment demand is likely to exceed the highest point last year.
In addition, the impact of the epidemic has also partially affected Hong Kong's air transport timeliness. Some netizens revealed that Hong Kong has cancelled some flights to Southeast Asia, Europe and the United States where the epidemic is more serious.


3. Logistics prices are rising, how to reduce costs and avoid risks


1. Communicate with logistics providers to book shipping space in advance and choose some logistics providers with strong carrying capacity.
2. Multi-channel delivery. According to the demand of products, choose sea, air and other ways of delivery, reasonable arrangement of replenishment channels to reduce logistics costs.
3. Prepare goods in advance and put them in the warehouse as early as possible, make an estimate based on sales volume, and ensure that the warehouse is fully stocked.
4. Always pay attention to logistics changes. Peak season often because of too much cargo and warehouse, port congestion and other problems. To pay attention to the latest news of goods, timely adjust the shipment plan.
5. Logistics costs can be reduced by optimizing product packaging and accounting for specific weight, volume and packaging combination.

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