[240121.EN.AIR] Air Cargo Costs '4 Times Higher' Post-Brexit Due To Airport Expertise

 

COMPANIES using air freight post-Brexit are being hit by four times higher prices due to the Covid crisis with fewer planes operating, says London logistics firm Mapcargo's UK managing director Mark Hawkins.

"Airports are geared for business outside the EU - all the custom requirements - as most work around European airports would be from outside the EU and customs are very experienced," said Mr Hawkins.

"But not so much on the ro-ro ports where of course the expertise hasn't been required for the last 30 years," he said, reports Beijing's China Television Network.

With fears of long waits at UK and EU seaports as new paperwork is needed to move goods across the English Channel, more businesses have opted to move freight by air.

But supply is being outstripped by demand, especially as air freight tends to move on passenger planes and many of these haven't been flying due to the pandemic.

It has led to a massive hike in prices. "It is nowhere near the air freight capacity because the vast majority of air freight generally moves on passenger aircraft," Mr Hawkins said.

"If the planes are operating there is a lot more air freight capacity, with some withdrawn from the industry it has really pushed up air freight rates so at the moment the cost of moving goods around the world is probably two to three times higher if not four times higher than it has been in the past."

Mr Hawkins said that there are many smaller vehicles carrying specific goods following Brexit and a lot of businesses are using air.

"There's a lot more focus on dedicated vehicles, for instance, so there are a lot more smaller vehicles running in and out of Europe at the moment," he said. "There's also a lot more air freight as well. In an effort to try and avoid any potential congestion or delays at the ro-ro ports such as Calais and Dover¡­. many traders are actually using air freight services where they can as well."

European airports generally have more experience in handling paperwork as they typically have had more cargo traffic that is moving outside the EU.

"What you are avoiding really is the potential congestion and lack of expertise perhaps in custom regulations and procedures at ports such as Dover, Folkstone and even on the European side as well," said Mr Hawkins.

Source : HKSG / Photo : YouTube.