The COVID-19 pandemic had a significant impact on the air transportation system worldwide. This blog aims at analyzing and understanding the effect of the cargo movement measures implemented during the COVID-19 pandemic.
Based on our experience, and discussed with major customers, how the travel and cargo restriction on passenger flight measures impacted the relationship between Exporter, Importer and airlines in close to real-time.
The proposed data indicate that each airline has reacted differently to the COVID-19 restriction measures.
Reports show that customers have impacted the shipment movement during COVID 19 due to the non-availability of passenger flights. Passenger flights having a major contribution to move the small/permitted cargoes which do not require cargo freighter options.
Passenger flights have cargo options to move it along with travelers and always small customers, big customers move the shipment with passengers to get the best rates.
Those shipment moves with passenger flights have the option to move it regularly due to availability, this also the biggest advantage.
Whereas the cargo freighter has weekly availability and also freighter charge special rates due to a wide freighter.
Customer struggling due to non-availability of passenger flights to move the cargoes and by force to increase the pricing budget to move it with the big freighter, even after they don’t have margin because of the deadline to finish the project or delivery to the consumer.
The major player in the freighter market has taken advantage of the opportunities and increase the rates to move the cargoes.
No control on the rates from every origin, even freighter not confirming the rates always.
On each booking new rates has to check with a freighter to move it.
Every booking there will be a difference in the rates from the freighter, which has impacted all customers to predict the budget for their project.
Passenger flights have constant the same tariff to move the cargoes and all customer has taken that tariff to keep the budget in level.
Unfortunately, COVID 19 made them the worst scenario and suffering from losses to finish the deadlines of the project.
In COVID 19, some got the advantage of the opportunities and some are in the looser conditions.
To focus on this issue and to understand deep thinking.
Is this really fair? When all world is suffering from COVID 19 disease and some big player were taking advantage to earn it.
My blog has a message to give all importers and exporters to understand and mitigate such scenarios when there will be unfortunate circumstances. Even, I can say from the perspective of passengers, all travel industries got impacted due to the non-availability of passenger flights, not even cargo.