MILAN, March 26 (Class Editori) -- The air freight costs rose sharply, so China intends to support its international presence in the sector so as to guarantee supply chains and value chains.
The side effects on the economy of the coronavirus epidemic also include rising costs. In the past few weeks, prices have gone from 10 to 40 yuan per kilogram. The concern is that for the transport of goods from China to Europe and North America it may reach 50 yuan.
As an employee in the sector cited by the economic-financial weekly Caixin points out, the difficulties in logistics contribute to the price increases.
Indeed, the cancellation of flights forces exporters to transfer goods to active ports and airports, therefore with additional steps. Alternatively, they decide to turn to sea freighters, where in March, however, costs have risen by 20 percent compared to the previous month despite a drop in volumes on an annual basis.
For these reasons too, the sector has been at the center of one of the last meetings of the State Council, the Chinese administrative authority. The concern that emerged during the meeting is that the current international capacity is insufficient, with risks for global supplies and therefore for the possibility for companies to fully resume their business.
Therefore, Beijing aims at supporting the expansion of the fleets for all carriers. The commitment is to fairly help all companies independently of the ownership. Mergers will be encouraged, both between carriers and in logistics, and international expansion of shipping companies will be supported.
In addition, international airports in some regions such as Beijing, Tianjin, the provinces of Guangdong and Hebei, as well as Macao, Hong Kong, Chengdu and Chongqing will have to provide continuous 24/7 customs service.
The situation is complicated, and it is confirmed by some sources at work to bring to Italy masks and medical devices useful to contain the COVID-19 emergency. Direct flights are complicated and therefore stopovers are necessary.
As for passenger transport, also with the intent to mitigate the arrival of infected people, the Chinese Authority for Chinese Aviation has reduced the limit for foreign companies arriving in China to one flight per week. At the same time, domestic airlines reduced international routes to one flight per country.
(Source:Class Editori)
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