Air freight at new high on rising volumes, ash cloud

Chennai: Air freight rates to Europe have reached a new high even as the ash from an Icelandic volcano continues to disrupt flights across the UK and into Europe.
The rates are 25-30 per cent more than the base price, according to Mr N. Sivasubramaniam of Air Connection Pvt Ltd. For cargo of over 500 kg to Europe, the base price was Rs 140 a kg while some of the premium European freighters charge ‘express' and ‘flash' rates for cargo that need to be sent urgently with the increased rate, he said.
The rates are usually based on demand and supply. Last year, airlines were charging at a discount when the volume was poor. Currently, there is a huge demand for space due to export growth. Added to this problem is the ash that has created backlog in the last few days, he said.
According to an industry source, freighters to Europe are going ‘choc-a-bloc' even as the rate has been fluctuating in the last one month. The ‘ash fear' has aggravated the situation.
“We are getting 20-30 per cent higher rates from some of the premium airlines to Europe,” the source said. There is no major disruption to other sectors such as the US, he said.
17/05/10 T E Raja Simhan/Business Line

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Categories: Cargo May 2010, Foreign May 2010