Illustrative image (Photo: Internet) Singapore (VNA) - Soaring air freight rates and rising cancellationsof trips by cargo ships due to the COVID-19 pandemic have put further pressureon global supply chains. according to insiders.
Most of the airlines around the world have cut their operation by 90 percent, significantlyreducing global freight capacity. Freight rates are rising daily because demandis far beyond capacity, President of the Singapore Aircargo Agents Association(SAAA@Singapore) Steven JK Lee said.
Vincent Phang, CEO of Singpost, the country’s postal service provider, said ithas been suffering from suspensions and delays in mail and freight deliveriesto and from many countries. It has also incurred growing air freight costsbecause there are only a few flights each day. Rates for VIP customers are nowtwo or three times higher, while those for ordinary customers have gone up sixto ten-fold.
The situation has become even worse as more and more shipping lines havecancelled or halted trips without notice.
Raymon Krishnan, President of the Logistics and Supply Chain Management Society of Singapore,said it’s not just about the number of trips but also how they are beingcancelled or halted.
Shipping lines used to provide notice about cancellations three to four weeksin advance, but as COVID-19 has spread globally, cancellations or suspensionsare effective almost immediately./.
Most of the airlines around the world have cut their operation by 90 percent, significantlyreducing global freight capacity. Freight rates are rising daily because demandis far beyond capacity, President of the Singapore Aircargo Agents Association(SAAA@Singapore) Steven JK Lee said.
Vincent Phang, CEO of Singpost, the country’s postal service provider, said ithas been suffering from suspensions and delays in mail and freight deliveriesto and from many countries. It has also incurred growing air freight costsbecause there are only a few flights each day. Rates for VIP customers are nowtwo or three times higher, while those for ordinary customers have gone up sixto ten-fold.
The situation has become even worse as more and more shipping lines havecancelled or halted trips without notice.
Raymon Krishnan, President of the Logistics and Supply Chain Management Society of Singapore,said it’s not just about the number of trips but also how they are beingcancelled or halted.
Shipping lines used to provide notice about cancellations three to four weeksin advance, but as COVID-19 has spread globally, cancellations or suspensionsare effective almost immediately./.
VNA
