HONG KONG (BLOOMBERG) - Urgent demand for medical equipment to fight the coronavirus has sent the cost of chartering aircraft skyrocketing and turned a typically humdrum process into an ultra-competitive auction.

"Chartered prices have been pushed up from less than US$300,000 (S$427,800) four to six weeks back to US$600,000 to US$800,000 in the last few days," Anthony Lau, chairman and founder of logistics company Pacific Air (HK) Ltd, said in an interview on Friday (March 27). "It is absolutely crazy."

Usually, it would cost US$300,000 to charter a Boeing 747 or 777 from Hong Kong to Europe in non-peak season, Lau said.

"The price is changing by the hour. We have never, ever experienced this," he said.

An unprecedented collapse in passenger demand is prompting airlines to use their fleets to transport more cargo, including medicines, as the coronavirus pandemic causes major disruptions to supply chains and exacts a heavy toll on the world. Infections globally have climbed above 720,000 and about 34,000 people have died from the virus.

The likes of Cathay Pacific Airways, Korean Air Lines and American Airlines Group are hauling a greater amount of goods in the bellies of their passenger planes to keep up with demand. Cargo rates have risen over 10 per cent in recent weeks.