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Jun 10, 2020 (newstodate): As the coronavirus crisis built up, the race for shipping PPE from China to Europe developed frantically. Now the pressure is easing.
-After the coronavirus has peaked and is hibernating, in many parts of the world at least, PPE stores have been filled and the race for air cargo capacity has decreased, says Ole Haahr Hansen, Blue Water Head of Airfreight.
-As a result, ex-China rates are now so low as to make all-cargo flights unprofitable, while shipments are finding other ways towards Europe. It has been a huge experience for anyone involved, but we should remember that we at Blue Water carried much more cargo out of China before the coronavirus hit, than was the case during the frantic period with the pressure reaching all-time high levels due to the scarcity of cargo capacity.
-Now, we are seeing the heat turning up on both sea and rail cargo, with rail cargo especially developing explosively. And add to this that even trucking from China to Europe is now in the market, offering lead times between air and rail, but at lower rates.
-The big question is: what is the future for air cargo in the near, or mid-term perspective? Given the changes in supply chains, will there still be a need for air cargo at levels comparable to pre-crisis levels? The issue is: what will the market require, and which rate levels will the markets accept?
-Today, everything is up in the air, so to speak, says Mr Hansen.
-After the coronavirus has peaked and is hibernating, in many parts of the world at least, PPE stores have been filled and the race for air cargo capacity has decreased, says Ole Haahr Hansen, Blue Water Head of Airfreight.
-As a result, ex-China rates are now so low as to make all-cargo flights unprofitable, while shipments are finding other ways towards Europe. It has been a huge experience for anyone involved, but we should remember that we at Blue Water carried much more cargo out of China before the coronavirus hit, than was the case during the frantic period with the pressure reaching all-time high levels due to the scarcity of cargo capacity.
-Now, we are seeing the heat turning up on both sea and rail cargo, with rail cargo especially developing explosively. And add to this that even trucking from China to Europe is now in the market, offering lead times between air and rail, but at lower rates.
-The big question is: what is the future for air cargo in the near, or mid-term perspective? Given the changes in supply chains, will there still be a need for air cargo at levels comparable to pre-crisis levels? The issue is: what will the market require, and which rate levels will the markets accept?
-Today, everything is up in the air, so to speak, says Mr Hansen.