China production is rebounding however the grounding of most air carriers, scarcity of truck drivers, and restrictions on ocean freight has limited capacity - and driven up freight rates.
Since the U.S. has banned foreign visitors, 85 percent of air capacity has been lost. Air freight rates have risen nearly five-fold.
“We have seen the cost on direct services out of Europe to the United States now in the range between 5 to 10 euros per kilo versus less than 1 euro in normal conditions,” Jochen Freese, chief commercial officer with German-headquartered Hellmann Worldwide Logistic, told Reuters.
Pitney Bowes reveals stats on the explosive growth
of global package delivery.
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