Why did the logistics price hike come again?

At the beginning of the outbreak, the three major international express operators quickly adopted emergency measures to minimize the impact of the epidemic on their operations, especially their profits. DHL announced that it will collect surcharges globally and suspend its main services to and from India; UPS will suspend its service level commitments in the United States and charge surcharges for China's export business; Fedex will suspend its refund guarantee services worldwide. Recently, the international logistics industry has ushered in a new wave of price increases. Amazon America, Europe, and Japan have successively issued notices to restrict shipments. Subsequently, the Canadian station also announced restrictions on shipments. Recently, logistics prices in the United States and Canada have increased by about 5%, and the three major international express carriers have all seen price increases. According to the latest tracking data from Airfreight Index Co., freight rates from China to Europe and the United States rose 6.2% and 4.9% respectively last week.

Why did the logistics price hike come again?

The main reason is that the new crown pneumonia epidemic continues to spread, and 23 airlines worldwide have closed down. The International Air Transport Association predicts that the global aviation industry will lose 84.3 billion U.S. dollars in 2020, and it may take five years for aviation demand to return to pre-epidemic levels. According to a report from Time Magazine on July 29, US Senator Joe Manchin and a union leader said on the 29th that the U.S. Postal Service is considering closing post offices across the country, which has raised concerns. It is reported that the new crown virus pandemic has further increased the financial pressure on the postal service, which lost US$4.5 billion in the first quarter of this year. At the same time, the Hong Kong epidemic has rebounded. The number of new confirmed cases in a single day has exceeded 100 for several consecutive days, which has intensified the impact on air logistics. Hong Kong UPS canceled cargo flights on a large scale, causing air express delivery to skyrocket. According to the South China Morning Post today, the union representing FedEx pilots in the United States called on the company to suspend flights to Hong Kong, China. FedEx pilots said that Hong Kong’s stricter measures against the new crown epidemic would bring “unacceptable measures”. Risk", so I want the company to suspend flights to Hong Kong. As a transit point for sellers, Hong Kong’s importance is self-evident. Nowadays, its flight shortage and capacity are severely inadequate. The impact on sellers and logistics companies is also very obvious.

In addition, since July this year, there have been news of warehouse explosions in the United States. Not only FBA sellers, but also self-delivery sellers and overseas warehouses are also facing serious problems of warehouse explosions. The two warehouses of FTW1 and IND9 in the United States are particularly serious. Sellers’ goods are distributed to these two warehouses. Sellers queue up to enter the warehouse and queue up for storage. Some sellers even spent more than a month on the shelves. Warehouse explosions have led to an increase in operating costs for logistics companies, followed by an increase in logistics prices. The epidemic in the United States is still continuing. The number of confirmed cases has exceeded 4.5 million. Coupled with the impact of the US riots, final delivery is particularly difficult, which virtually increases the cost and pressure of express delivery companies.

Many people have other speculations regarding the increase in logistics. For example, the impact of Sino-US international relations or the increase in air freight prices caused by large companies' centralized shipments. As far as this year is concerned, logistics price increases may still appear intermittently in the short term.