Amid China Airlines’ growing COVID outbreak, the carrier’s pilots will soon be getting orders to return to Taiwan for testing. Freight industry players say the testing campaign will deal a major blow to the airline’s cargo service – and to the cost of air shipping. According to one estimate, prices for shipping to the U.S. East Coast could soar from the current NT$380 per kilogram to NT$500.

In the wake of the China Airlines outbreak, the government has recalled all the carrier’s pilots for testing, putting a wrench in the flight schedule. Earlier this month, China Airlines already cut dozens of cargo flights due to its outbreak. Now more cuts are on the way.

Huang Chi-ming
Taipei Airfreight Forwarders & Logistics Association
They had already canceled a great many flights, especially on U.S. routes – New York, Los Angeles, and San Francisco. They’ve cut 40 or 50 flights, both ways. Those of us in the industry hope that the Civil Aeronautics Administration and the transport ministry will do what they can to help China Airlines.

A freight industry representative says costs for air freight are about to spike. Shipping to the U.S. East Coast could rise from NT$380 per kilogram to NT$500. West Coast freight could reach NT$470 per kilogram, up from NT$300 at the start of the year. The price hike could be even worse than that at the height of the pandemic last year.

Huang Chi-ming
Taipei Airfreight Forwarders & Logistics Association
We’re not yet able to give customers a quote for June prices. The prices in May, after the price hike, could reach more than NT$500 per kilogram for U.S. and European routes. These goods, especially electronics goods, are in urgent demand.

China Airlines has informed customers that it will stop accepting cargo for Hong Kong, Macao, and China, starting this week. Sources say its cargo flights for May are fully booked, and that its flight cancellations have left some cargo stranded, with no plane to board. EVA Air, Taiwan’s other main carrier, has less cargo capacity and will be of limited help in the shipping crunch. Industry players say that high freight rates will be the norm in the near future.

Huang Chi-ming
Taipei Airfreight Forwarders & Logistics Association
EVA Air can’t really pick up the slack, as it only has five cargo planes. China Airlines will likely prioritize its most profitable routes, such as its Asia routes, which are less likely to be affected. The greater impact will be on the European and American routes.

China Airlines’ reduced cargo service stands to affect everything from e-commerce to chips, bringing delays in shipping. But the carrier says that according to its initial calculations, only 10% of its cargo capacity will be reduced. It says it will juggle manpower to maintain cargo flights and prevent a total shutdown.