Cargo prices skyrocketing as companies and the federal government rush medical supplies to the US

CNN — The cost to ship goods to the US has jumped up in recent weeks as demand for medical supplies and other goods has skyrocketed and the number of flights has dropped amid the global coronavirus pandemic. “And that’s what you’re seeing.” There is a lot of “rapid, high demand ordering” by US companies trying to import medical supplies, personal protection equipment and medical technology, like ventilators, as well as perishable food and perishable pharmaceuticals, he said. Large airlines have “stepped up to the plate” and are flying the passenger planes as all cargo flights because they can’t fly passengers, said Fried. “When we operate passenger planes as freighters, it’s only 25% of capacity but the price is for the full plane,” said Peter Gerber, CEO of Lufthansa Cargo. Recently a large order was rerouted to another country to get it to the US, because there was such a backlog, said Brugger, adding that the “additional cost was absorbed, but these cost increases end up by costing everyone time and money.” Leo Friedman, CEO of iPromo, a Chicago-based promotional products distributor, told CNN that air cargo prices jumped two to three times the normal cost.