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Clearing the ash-induced back-log

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Clearing the ash-induced back-log

May 1, 2010 by PLA Editor

The six-day shut-down of Europeanairspace due to the Icelandicvolcano eruption saw tonnes ofcargo piling up around Asia – a boon forcharter operators and bane for shipperswho, in many cases saw premium ratesbeing charged to clear the backlog.

In some cases, freight rates to Europe jumped to nearly 100 Hong Kong dollars (US$13.30) per kilogramme, from less than 30 dollars before the closure of airports in Europe, according to the Hong Kong Shippers’ Council. Sunny Ho, council executive director, said many Hong Kong exporters “would be in trouble” for failing to deliver goods ranging from high-end fashion to automobile parts on dates specified in contracts with buyers. “It is difficult for airlines to clear all the backlog they have accumulated in a short time,” Ho said, according to AFP.

In Hong Kong Air cargo carriers are charging Hong Kong exporters a premium to clear their backlog as thousands of tonnes of goods are estimated stuck at warehouses after volcanic ash closed European skies.

“No one expected that airports would be forced to close because of volcanic ash. Exporters may have to pay compensation or charge less for their goods if they don’t have a clause in the contract to exclude their liability under such condition.” Ho said some exporters had chosen to ship goods by sea instead. “But you can’t do it with perishable goods – it takes more than 20 days to send them by sea, compared toonly one day by plane.”

The scramble to move the backlog once the per airspace reopened also saw a spike in demand for charters – including key routes to and from the Middle East, North America and worldwide. “There is suddenly a large number of charter requests to destinations where there is normally ample scheduled capacity – for example flights from Europe to US hubs like New York (JFK) and Chicago (ORD),” said air charter specialist Chapman Freeborn.

Forwarders and shippers have been requesting and booking flights using airports anywhere in mainland Europe – like Spain and Bulgaria, for instance – even if it means trucking freight far longer distances than would usually be considered. In terms of the types of freight, Chapman Freeborn said it is seeing requests for pretty much everything – general cargo, automotive cargo, oil and gas pieces, perishables and so on.

Even the world’s largest freighter, the 250-tonne capacity AN-225 was pressed into action in an unusual role – transporting a consignment of general cargo from Shijiazhuang Airport, Beijing to Vitoria, Spain on behalf of a major freight forwarder who was attempting to reduce a backlog of cargo that had built up in China.

Other Topics: Air & Cargo Services, air cargo, Air Cargo Asia, air cargo freight, Air Forwarding, air freight, Air Freight Asia, Air Freight Logistics, air freighter, air freighting, Air Logistics Asia, Air Shipping Asia, airlines cargo, airways cargo, asia cargo news, cargo aviation

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