General overview: Due to the typhoons over the past two weeks hundreds of flights were cancelled (though they have now resumed). As a result, space on all routes is very tight, and air rates have been steadily rising. Space was already tight due to eCommerce and large electronics air freight shipments.
Typhoon Pulasan, the 14th typhoon of the year according to China's meteorological authorities, made its second landfall in Shanghai's Fengxian district on Thursday night, three days after Typhoon Bebinca struck the city. However, Pulasan is a smaller typhoon, and all flights in the Shanghai and Ningbo areas are currently operating normally, with no cancellations at this time.
In Bangladesh, Dhaka airport (DAC) is facing severe congestion, with all space fully occupied and shipment dwell times extended to 4-5 days due to backlogs. Carriers, including BG, EY, EK, and SV, are struggling with equipment shortages, delaying handovers and EDS serial number issuance. Air rates are fluctuating frequently, with carriers raising rates without prior notice. Ad hoc rates are being offered based on space availability and onward connections, particularly for US and Canada flights.
In India, air freight demand continues to surge and carriers are raising rates. Space for US-bound flights is especially tight. Unpredictable rainfall in Mumbai is causing delays, and congestion at DEL airport persists.
Shanghai to London
- Airport operations are currently normal
- Hauliers are working as normal
- Space is very tight
- Air rates are increasing
Shanghai to New York
- Airport operations are currently normal
- Hauliers are working as normal
- Space is very tight
- Air rates are increasing
Shanghai to Los Angeles
- Airport operations are currently normal
- Hauliers are working as normal
- Space is very tight
- Air rates are increasing
Shanghai to Frankfurt
- Airport operations are currently normal
- Hauliers are working as normal
- Space is very tight
- Air rates are increasing
Shanghai to Melbourne
- Airport operations are currently normal
- Hauliers are working as normal
- Space is very tight
- Air rates are increasing
Shanghai to Sydney
- Airport operations are currently normal
- Hauliers are working as normal
- Space is very tight
- Air rates are increasing
Market intel
Cainaio to add more e-commerce logistics hubs
Alibaba-owned Cainiao Group has revealed plans to add more global e-commerce logistics hubs (e-Hubs) that are likely to boost air cargo volumes at the chosen sites.
The e-commerce logistics giant said that the new facilities would create a shared infrastructure “that supports all e-commerce platforms, merchants, and brands in their efforts to sell both online and offline worldwide”.
They would also be part of the firm’s initiative to achieve its long-term goal of global deliveries within 72 hours.
In response to questions from Air Cargo News, Cainiao said it was not ready to confirm locations. However, its existing three hubs have all been located close to “high traffic” airports – Liège, Kuala Lumpur, and Hong Kong – and have helped boost volumes and cargo flights through the hubs.
“We’re committed to exploring new market opportunities that help strengthen our global network,” a spokesperson said. “We’ll share more details about our plans as they develop.”
Joe Tsai, co-founder and chairman of Alibaba Group, chairman of Cainiao Smart Logistics Network, said: “In e-commerce, supply chain and logistics are crucial competitive factors.
“Alibaba is fully supporting Cainiao’s global expansion to build a logistics network that meets future industrial and supply chain needs. By integrating AI-driven innovations and focusing on a customer-first approach, we encourage Cainiao to build a logistics network that serves the open market, addresses diverse customer needs, and acts as a shared infrastructure for global business partners.”
Wan Lin, chief executive of Cainiao Group, added: “This expansion is a vital step in enhancing Cainiao’s international express delivery, overseas local delivery services, and supply chain solutions. It will strengthen our position in the fast-growing e-commerce and logistics market, allowing us to deliver enhanced end-to-end logistics solutions that improve retail experiences for our customers and facilitate their global expansion.”
Cainiao said its existing e-Hub facilities integrate cargo terminals, customs clearance, and sorting functions.
When Cainiao first announced plans to develop global hubs in 2018, it named Hangzhou, Dubai, Kuala Lumpur, Liege and Moscow as its initial chosen locations.
Source: Air Cargo News
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