The Business Insider accounts for the shipping crisis is boosting demand for air cargo, with desperate retailers sending the price of an air freight charter to record levels.
Pre-pandemic peak price
According to Air Charter Service, a trans-Pacific charter on a Boeing 777 costs around $2 million a pop.
According to the UK-based air charter service, the pre-pandemic peak price for such a charter was $750,000.
Trade publications American Shipper and Journal of Commerce report similar prices quoted by other industry executives.
It could get even more expensive for companies trying to ship goods out of Vietnam with rates in the $2.5 million to $3 million range, said Edward DeMartini, vice president of air logistics development for North America at Kuehne+Nagel, per American Shipper.
Vietnam is a major manufacturing base for clothes, shoes, and electronics.
But a months-long lockdown and recent worker exodus from the country’s business hub have caused operational disruptions on the factory floors and at ports.
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Source: Business Insider
