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Mar 07,2022

The price of air freight from China to Europe has skyrocketed! US closes airspace to Russia!

The closure of airspace by European countries has meant that Russian international flights have few options to fly westward. As the United States closed its airspace to Russia, the air freight market was hit again, and the price of air freight from China to Europe also skyrocketed.


The price of European air dispatch has doubled
According to the feedback from freight forwarders, the current European air delivery price has been soaring, and it has soared from the lowest 18 to 50-60 yuan/kg. Such an abnormal increase may continue.

Recently, the retaliatory measures of many European countries and Russia to "no-fly" each other have had a huge impact on the aviation industry. Some flights had to be canceled or substantially detoured. The international crude oil price once exceeded US$100 per barrel, which will further increase the operation of airline companies. cost.

Previously, about 600 daily flights taking off or landing in Europe flew over Russian airspace. Many international airlines routinely pass through Russian airspace when flying some of the Europe-Asia routes. Nearly 195,000 commercial flights will pass through Russian airspace in 2021, according to the Russian Federal Air Transport Agency. Before the pandemic, the number was more than 300,000.

 

The price of air freight from China to Europe has skyrocketed! US closes airspace to Russia!

 

The expert analysis said that there are not many all-cargo aircraft in China, and many of them are all-cargo aircraft from Europe for domestic transportation. Affected by the closure of the airspace, the China-Europe cargo route industry may need to find a stopover point, and the flight time and fuel consumption will increase. According to German media reports, a flight from Belgrade to Moscow was forced to detour through Kazakhstan on February 27 and ended up in the air for more than six hours, compared with the usual two and a half hours.
The market's reaction to the blockage of air freight has begun to emerge gradually, and if this situation continues, contract prices may also rise in the future.


Airfreight from China to the United States is also not optimistic

In terms of China-US routes, according to Russia's previous reciprocal response to the closure of airspace by European countries, there is a high probability that it will also close its airspace to the United States. Since some Sino-US routes need to pass through Russian airspace (such as some routes from China to the east of the United States), if Russian airspace is closed to the United States, it is foreseeable that Sino-US routes will be similarly affected at that time. If the airline chooses to fly to the airspace of other countries, the transportation time and fuel cost will increase, and the situation is also not optimistic.
The obstruction of air transportation may turn the transportation demand to land, water, and other transportation methods. However, due to the frequent incidents of cargo ships being attacked and detained, the current danger of shipping in Russia and Ukraine is obvious to all.

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