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Why is air cargo suddenly more affordable relative to ocean shipping?

Shippers are paying more for air cargo these days, but with ocean shipping no longer cheap there is more interest in air transport. ( More...

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sharon bias 3
Actually is cost effective for some items, like computer chips. A couple of 747's filled with chips would make a dent in the backlog of items waiting for them. How many cars are waiting on lots to be finished with chips?
Eric Kulisch 2
Good point. And semiconductors are being flown to automakers. The problem is production. Chip makers have had some setbacks and can't catch up.
jeff slack 1
They (chips) already fly to their end manufacturing point in 100% of shipments.

The shortage is based on raw material shortages and China is the only major producer to mine rare earth minerals that make the chips.

The USA does have some limited mining and is trying to get itself and other nations to resume what was discontinued back in the 80's.

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Rare earth industry looks at global chips shortage for lessons › rare-earth-industry-looks-at-global-chips-...
Jun 7, 2021 — Cascading supply chain issues are leading to shortages of many ... Rare earths are a group of 17 metals crucial to the manufacturing of ...

Eric Kulisch 1
There have also been fires at some plants, plus more demand than capacity to produce. So it's a whole bunch of issues. Raw materials part of the problem. Thanks for sharing that link


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