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  • Writer's pictureStephen Fodor

Air Cargo Options Remain Limited

The Coronavirus has caused a rapid reduction in passenger airline flights and considering the fact that a large part of air cargo shipments travel on passenger flights. With the uncertainty of the impact of the virus in the coming weeks and months it is difficult to predict when cargo capacity will increase. Since air cargo space is at a premium expect rates to continue to rise accordingly.

It is important to note that some air cargo carriers move more than 70% of their cargo on passenger flights meaning the reduction in passengers flights is greatly minimizing cargo options.

It is critical that importers communicate with their freight forwarder to help ensure the space they need will be available when they need it.

Ripple Effect of China Shutdown Being Felt

While China has borne the brunt of the Coronavirus the ripple effect from that is starting to be felt in other Asian countries as they face shortages of parts and materials from China manufacturers. As the impact as starting to be felt now and will likely last for 30 days or more it is anticipated that suppliers in other Asian countries may struggle to meet production demands.

Importers are encouraged to speak with their suppliers to determine realistic timelines for their products to be able to reach the U.S.

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