Ahead of China's lunar new year, air freight rates have spiked and shipping firms have suspended services, putting the spotlight on overwhelmed supply chains.
"With enough time to still move cargo by air, the pre-holiday rush, along with pandemic-restricted capacity is pushing air cargo rates up," he said, adding that the Freightos Air Index showed the China to North Europe rate was at $9.59 per kg in mid January— up over 50% from below $6 per kg at the start of January.
Some major shipping firms, such as Ocean Network Express and Hapag-Lloyd, suspended services and operations even earlier than last year to celebrate the season, according to Vashistha. That's straining already-fragile supply chains, he said. "I would say that this is going to slow the improvement we've been seeing over the last couple of months," he told CNBC's "Squawk Box Asia" on Thursday.China's zero-tolerance for Covid will have a major impact on global supply chains, said John Ferguson, practice lead for globalization, trade and finance for think tank Economist Impact.
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