Our global team is working hard to continue operations as normal. Following the recent announcements of an extended New Year holiday we have applied contingency plans that allow our colleagues in China to work from home, and managers are in daily contact with their team.
We expect supply chains to be affected as manufacturing is halted further, and staff will be unable to attend work. This will also affect truckers, cargo handlers, warehouse operators etc. The knock on affect is likely to be a surge in air pricing as the back log of orders mount due to delayed production, and the demand for air freight will increase to bridge the gap.
The good news is we are planning with our customers to identify priority orders and products to forward plan as much as possible. By looking at new routing options that may include road/air services, sea-air services and other deferred air services, we will be able to help you keep your supply chain moving.
Source: Air Cargo News 29/01/19
The air cargo industry is bracing itself for the impact of measures taken to halt the spread of the deadly coronavirus in China. Overnight, British Airways announced that it would suspend all direct flights to and from mainland China, with others expected to follow.
United Airlines, Cathay Pacific and Air Canada are amongst the other airlines that had already announced plans to reduce flight numbers.
Meanwhile, the Chinese government has extended the New Year holiday – a time when production in the country comes to a halt – by at least three days, until February 3.
Businesses in the Jiangsu province, which includes Shanghai, have been ordered to remain closed through to February 10.
And the vast majority of flights into and out of Wuhan, the epicentre of the outbreak, were stopped last week.
It isn’t yet clear what impact this could have on air cargo, although supply chains are expected to be hit, with bellyhold air cargo capacity already reduced.
Meanwhile, there has been some suggestion that there could be a surge in demand when factories re-open.