Air Cargo’s Coronavirus Problem

–  Air Cargo’s Coronavirus Problem –

Business shipment Sbags activity has been highly affected by the increase of last shipping rates. Our goods have been shipped by sea cargo since 2010. Air cargo has not been very demanded by us because of the rather expensive cargo rates. Even with that fact, governments are taking advantatge of the new air cargo industry situation, by sending medicines and vaccines by plane in a very short period of time.

Currently our company’s main revenue is dependent on sea import prices. Logistic Services Corporations (LSCs) have been rising their rates due to the high demand on product deliveries before Christmas and the Chinese new year. Worth mentioning that latest cargo shipping rates have already been increased by nearly 100% compared to the previous year. Resulting in our activity being directly affected by the economic consequences of the Covid19 pandemic.

Due to the situation in the early 2020, some LSCs were suffering a high decline of demand in their business so they downsized their fleets trying to reduce costs to manage the economic impact. Therefore, nowadays they have less capacity to ship cargo, so the recent unpredictable rise of shipping demand has incurred in an unexpected increase in shipping costs.

Another remarkable factor of this disproportionate increase in rates, is the lack of regulation and tax policies affecting this big corporations. Resulting in monopolized markets and high prices.

In the near future I hope Covid19 vaccines will have solved the present global health problem, returning the global economy to its normal pace. Stabilizing shipping rates and the normal activity for all companies around the world.

Then, we will have defeated the Covid19 pandemic.

– Air Cargo’s Coronavirus Problem –