The shipping crisis has gotten so bad that some companies are chartering air cargo planes for $2 million or more for a single flight

by : Huileng Tan

The shipping crisis is driving some companies to ship their goods via air charters.

A trans-Pacific Boeing 777 air freight charter has hit $2 million – more than double its peak pre-pandemic price.

It could cost even more to ship out of Vietnam, as the manufacturing hub faces multiple disruptions.

The shipping crisis is boosting demand for air cargo, with desperate retailers sending the price of an air freight charter to record levels.

According to Air Charter Service, a trans-Pacific charter on a Boeing 777 costs around $2 million a pop. According to the UK-based air charter service, the pre-pandemic peak price for such a charter was $750,000.

Trade publications American Shipper and Journal of Commerce report similar prices quoted by other industry executives.

It could get even more expensive for companies trying to ship goods out of Vietnam with rates in the $2.5 million to $3 million range, said Edward DeMartini, vice president of air logistics development for North America at Kuehne+Nagel, per American Shipper.

Vietnam is a major manufacturing base for clothes, shoes, and electronics. But a months-long lockdown and recent worker exodus from the country’s business hub have caused operational disruptions on the factory floors and at ports.

Such bottlenecks come amid recovering demand from the US and Europe, stressing global supply chains.

“We’re chartering like mad,” Marc Schlossberg, executive director for air cargo at New York-based Unique Logistics, told American Shipper.

Sportswear giant Nike is one of those using more air freight, reported trade publication Retail Dive.

E-commerce giant Amazon is also reportedly shopping for secondhand cargo jets to avoid major port delays.

“If you had asked me a few years ago whether anyone would take an option of an aircraft positioned in at that price, I would have said it’ll never happen, but some shippers have simply been left with no other options,” said Dan Morgan-Evans, Global Cargo Director at Air Charter Service in a website post earlier this month.

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