Shipping crisis pushing some companies to charter cargo planes for $ 2 million or more
Shipping companies have started chartering cargo planes for huge sums for a single flight as the shipping crisis continues to worsen.
The trans-Pacific charter company Air Charter Service said a flight in a Boeing 777 would cost at least $ 2 million. The peak price before the pandemic was around $ 750,000.
Some companies have reported fares closer to $ 3 million for flights from Vietnam, Initiated reported. The Southeast Asian country serves as a major manufacturing base for clothing, footwear, and electronics.
Typically, around 90% of the world’s traded goods travel by ocean freight due to its significantly lower costs, but delays have forced companies to look for alternatives. Even Amazon is reportedly looking to buy used cargo jets to cut its own shipping delays.
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Shipping delays are piling up and cargo is piling up in California ports. Tens of thousands of containers are stranded at the ports of Los Angeles and Long Beach in California, which carry more than a quarter of all U.S. imports, according to the Wall Street Journal, which noted last month that dozens of ships are aligned to dock. with waiting times of up to three weeks.
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Sarah Galica, Home Depot’s vice president of transportation, said the newspaper that the idea of ââusing private charters started out as a joke. In May, someone said, “Let’s just charter a ship” to get the goods faster: now the company is chartering ships and planes to try to avoid further delays.
These delays have spilled over to commercial airports with traditionally heavy cargo traffic – such as Chicago’s O’Hare, Los Angeles, Dallas-Fort Worth and New York’s JFK – which are incredibly congested due to labor shortages. work that have added delays of three days to two. weeks for terminals to make shipments available.
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“October is probably going to be one of the worst months [ever] in terms of air freight transport for the maritime community, âsaid Edward DeMartini, vice president of North America Air Logistics Development at Kuehne + Nagel.