Originally Posted by
WaytoomuchEurope
I am in a global supply chain role and my teams source globally for distribution around the world. I can confirm the sky-rocketing of prices, but ex-Europe is much worse than ex-China. As of today, air freight out of Europe is up 8X into certain US markets that have seen a capacity reduction in the area of 80%. Typical to pay ~ 3 EUR/kg, today quotes are ~26 EUR/kg. The average over the past week out of China is 2-3X standard rates.
On top of this backlogs are running 7-10 days out of most markets.
I don't know the economics for the airlines but I can say definitively that the business would be there for them, particularly for markets like Chicago, Houston, and LA.
So why aren't they running the flights?
I don't know anything about finance or supply chains, but what does the cargo markup need to be in order to fly a plane with no passengers and still come out ahead?