As the world continues to recover from the COVID-19 pandemic, the wide-reaching effects continue be felt by the mobility industry. As companies continue to push forward and place talent where needed globally, the costs and challenges of transporting goods have become not only more difficult but also more costly, especially in regard to air freight.
The dramatic decline in global travel has forced airlines to reduce capacity by approximately 71% in order to slow their dramatic financial losses. The lowered capacity directly impacts the availability of cargo space, as 50% of air freight is currently moving via passenger aircraft. The decrease in available cargo space is further complicated by the increased capacity demands of companies such as FedEx, UPS, and DHL, which are experiencing peak season small package volume due to the increased shop-from-home necessity caused by the vast number of quarantines in place. Increased demand and decreased cargo space have led to longer transit times and have been the driving factors of increased costs.
As air freight costs continue to rise, it is important to Aires that we continue to be vigilant in our processes and inform our clients of any increased costs or delays in shipping as they occur. We have taken proactive steps in order to minimize the impact to our clients. These include:
- Obtaining multiple quotes, reviewing each one for accuracy and pricing
- Inquiring about delays in shipping prior to packing dates being scheduled
- Inquiring if there will be additional storage charges if the shipment is unable to be placed on an outbound flight within a reasonable timeframe
- Communicating any challenges to all impacted parties
While we all look forward to a return to business as usual, Aires is committed to easing the challenges faced during these extraordinary times.
If you have any questions, please reach out to your Aires representative.