Air Freight Costs Have Almost Tripled Since the Beginning of the Year

According to the UK-based Air Charter Service, a charter from Asia to North America on a Boeing 777 now costs around $2 million. For reference, the pre-pandemic highest price for such a charter was $750K.

According to the latest data from TAC Index, the air freight costs from Hong Kong to North America reached $10.4 per kilo in October, which is three times more than in early January (with the rate $3.3 per kilo).

The rates from Hong Kong to Europe have increased from $2.9 to $7.2 per kilo over this period.

Switching to charters

More and more importers are seeking to move their goods via charter flights. Charters organized by freight forwarders are most common now as they allow the importers to organize their own network of routes and services without having to use the services of commercial airlines.

It is noted that the advantages of such a format include shorter and more reliable delivery terms and fewer risks associated with the shipment of freights by different carriers. But the advantages come at a cost – the rates of charter flights are almost four times more than in the pre-pandemic times, which is explained by the current shortage of the available capacities in the market.

According to Bloomberg, Amazon is preparing to launch direct long-range flights from China with its own crews.