Asian exporters may pay as much as 70 percent more than the standard airfreight rates as they look for alternative ways to send cargo to the US after West Coast ports closed because of a labor dispute.
The highest rates apply to exporters wanting to book space with specific delivery times, said Mark Noske, Area Operations Manager of South Asia with Emery Worldwide, which books cargo space on ships and planes for its customers. Standard airfreight rates are also starting to rise in Asia, he said.
``All the ships are still sitting there and by the time they come back and turn around, Christmas would be over,'' said Noske.
``This would have a massive impact unless you can airlift but everybody is scrambling for the same space.'' The US West Coast ports have been shut for more than a week, stranding about 192 ships, as talks continue between shipping companies and dockworkers. The stand-off is forcing companies like Toyota Motor Corp, the world's third-biggest automaker, to airlift parts to continue operations.
Emery, a unit of California-based CNF Inc, is considering chartering more flights to meet the increased demand for information technology products, Noske said.
Exel Plc, a UK airfreight and trucking company, has booked six chartered flights in the last four days to carry cargo out of Southeast Asia, said Henrik Lund, the company's airfreight director for Asia Pacific.
``There's clearly going to be a premium due to the increased cost of operations,'' said Lund, adding that more customers are switching to sending freight by air rather than by sea.
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