To Our Valued Customers:
The airfreight market continues to face challenges as new regulations go into effect and space continues to tighten. Rates out of China continue to creep upward and even charter services are becoming difficult to arrange due to lack of availability.
So here is a shortlist of what we are seeing so far today:
Airfreight Rates Increases Show No Sign of Slowing Down: Market rates from China started off the week at $13.00 per kilogram (kg) to the west coast and $16.00 per kg to the east coast. As mentioned in previous updates, these rate levels don’t necessary stick for long. Space is quickly becoming overbooked and importers are finding themselves scrambling for available, more expensive options in order to meet deadlines. Rates are being forecasted to reach as high as $20.00 per kg during this month.
Increased Demand for Charter Services: Finding available Cargo Aircraft Only (CAO)/Freighter aircrafts for charter has also become a challenge. Most arrangements are taking at least 1-2 weeks to fulfill and have price tags well over $1M usd per flight. Less expensive, passenger aircrafts are more easily available but have significant limitations on capacity. A typical wide-body aircraft has the max limit of 25 tons / 125 cbms (145 cbm when considering the empty passenger areas) while a CAO/Freighter aircraft can carry +100 tons and approximately 600 cbms.
China Implements CIQ Inspections for Exports: As of April 10th, certain medical supplies will need to be presented with a China Inspection Qualification (CIQ) certificate in order to be exported from China. Many larger medical suppliers will already have this document, while other suppliers will not. It is important that importers confirm the availability of this document prior to finalizing any purchases. In the event that the products have already been purchased, but have not yet shipped, it is imperative that they request the document prior to shipping.
If any merchandise would be attempted to export without the CIQ document, not only will the shipment be detained by Chinese Customs but the airline will charge a “Dead Space” fee for any unused, reserved space.
Please contact us for a full list of items, and associated HS Codes, that are subject to this new requirement.
U.S. Restricts Medical Supply Exports: Effective April 7th, the Federal Emergency Management Agency (FEMA) has issued a temporary rule prohibiting the export of PPE goods without their explicit approval. The ruling covers five (5) types of protective equipment and will be in effect until August 10th.
For full details, please visit the following link: https://www.federalregister.gov/documents/2020/04/10/2020-07659/prioritization-and-allocation-of-certain-scarce-or-threatened-health-and-medical-resources-for