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The shortage of everything will be exacerbated by logistical problems. Air transport operators have inflated prices
Many of the latest innovations in the form of the latest video cards, game consoles and much more can either be significantly delayed in deliveries, or receive a tangible premium to the cost for fast transportation by air. There are many reasons for this, the main of which are the growth of online commerce and the coronavirus pandemic. The logistics industry was simply not ready to work in the current conditions, which was especially aggravated on the eve of the holidays, from which gamers will also suffer.
Boeing cargo loading. Image Source: Jim Allen / FreightWaves
The reason for writing this note was a post on Reddit, in which one of the participants reported an almost twofold increase in the cost of commercial air transportation from China to the EU in just one month. According to the supplier, the number of flights and the capacity of the routes are limited, and the electronics manufacturers from China are sending more and more goods.
This also means that the main traffic can be directed by sea, which delays the receipt of ordered goods until January or February 2021. Finally, if delays lead to a shortage of a number of products, the list of which may well include the latest consoles and video cards, their prices could skyrocket much higher than those recommended by manufacturers.
What is really going on? The latest report of the analytical company Reportlinker, entitled “Global Air Cargo Containers Industry”, allows you to understand the situation with air cargo transportation. The main air cargo transportation, as it is easy to understand, is carried out in special containers on cargo planes. More precisely, it was so before the coronavirus pandemic.
First, American restrictions on trade with China, and then the pandemic and quarantine restrictions reduced the volume of movement of goods by air. According to the report, the volume of air cargo transportation in 2021 decreased by more than 37.2%. This led to a reduction in the number of involved cargo aircraft to 22.6%. Just imagine – now about one of the four cargo planes is taking off into the air, and all the rest are parked. This situation was also caused by difficulties with logistics, which rests on quarantine measures. Driving real heavy-duty air transport has become unprofitable.
Image Source: REUTERS / Edgar Su
Freight operators have found a way out in filling passenger areas with cargo on ordinary commercial liners. By the way, charter flights do not allow the use of aircraft usable area, since they are opaque for logistics. This year, Reportlinker says, the transportation of cargo by passenger aircraft will take away about $ 15.5 million from cargo airlines. For obvious reasons, transportation by liners will cost significantly more than transportation by a “truck”, which can lift up to 130 tons of cargo at a time.
Finally, the restriction of air traffic and the increased demand for medical cargo allows carriers to raise prices, and customers to agree to onerous terms. All this leads to the fact that the message about a twofold increase in the cost of air cargo transportation from China to “one very rich European country”, if it is mistaken in the level of growth in the cost of services, is hardly strong. For the coming months, you will have to come to terms with this.
By the way, not everything is in order with sea transportation. Discovered a problem with a shortage of containers and failures in logistics. Also, transportation was influenced by the general situation with the pandemic and a bias towards an increase in demand for personal protective equipment and other goods for couch potatoes. Therefore, the average cost of transportation in a sea container has increased. Not as much as in the case of air transportation, but the most annoying for sea transportation is the long waiting time for cargo.