Weekly Air Operations Update: Shanghai to Europe, US and Australia 11/11/22

Shanghai to London

The volume to LHR is down recently.
The operations staff are under a closed-loop management at PVG airport, so they have enough staff to handle the operation of commercial flights.
The delivery trucks need to wait outside the warehouse for unloading for 3-4 hours.
No flight cancellations
No weather disruptions
Capacity is open in North China and the space is still tight in South China.
The rates of North China are decreased this week but the rates of South China are still at high level due to the space limit.

Shanghai to New York

Demand to East USA is expected to be increased this month due to the upcoming holiday season
The operations staff are under a closed-loop management at PVG airport, so they have enough staff to handle the operation of commercial flights.
The delivery trucks need to wait outside the warehouse for unloading for 3-4 hours.
No flight cancellations noted at the moment
No weather disruptions
Capacity is normal
The rates are expected to be increased to a high level in the next few weeks due to the increasing volume for the holiday season.

Shanghai to Los Angeles

Demand to West USA is expected to be increased this month due to the upcoming holiday season.
The operations staff are under a closed-loop management at PVG airport, so they have enough staff to handle the operation of commercial flights.
The delivery trucks need to wait outside the warehouse for unloading for 3-4 hours.
PO is planning to cancel the flights ex PVG to LAX of next week.
No weather disruptions
Capacity is normal
The rates are expected to be increased to a high level in the next few weeks due to the increasing volume for Christmas holiday.

Shanghai to Frankfurt

Export volume to Europe is at a low level which leads to the current market depression.
The operations staff are under a closed-loop management at PVG airport, so they have enough staff to handle the operation of commercial flights.
The delivery trucks need to wait outside the warehouse for unloading for 3-4 hours.
No flight cancellations noted at the moment
No weather disruptions
Space is open. Various carriers have daily freighter flights ex Shanghai to Frankfurt.
The current market rates are at low level due to the decreasing export volume.

Shanghai to Melbourne

The export volume ex Shanghai to Melbourne is stable unless there is a large demand of PPE from Australia.
The operations staff are under a closed-loop management at PVG airport, so they have enough staff to handle the operation of commercial flights.
The delivery trucks need to wait outside the warehouse for unloading for 3-4 hours.
No flight cancellations noted at the moment
No weather disruptions
The space is open for now. All the freighter flights ex China to Australia have been cancelled since the beginning of 2020.
The market rates may be increased from the mid of November due to the coming of Christmas.

Shanghai to Sydney

The export volume ex Shanghai to Melbourne is stable unless there is a large demand of PPE from Australia.
The operations staff are under a closed-loop management at PVG airport, so they have enough staff to handle the operation of commercial flights.
The delivery trucks need to wait outside the warehouse for unloading for 3-4 hours.
No flight cancellations noted at the moment
No weather disruptions
The space is open for now. All the freighter flights ex China to Australia have been cancelled since the beginning of 2020.
The market rates may be increased from the mid of November due to the coming of Christmas

Market Intel

Air Cargo Volumes and Rates Continue to Decline: As airfreight demand fell for the eighth consecutive month, spot rates also continue to fall. Supply Chain Dive notes that this decline will be further impacted by the shift towards ocean freight, as the ocean side becomes more reliable and a viable option.
N. China: Demand remains low to U.S. Midwest and USEC destinations, while Far East Westbound (FEWB) demand is keeping steady. TPEB rates have dropped slightly and rates to FEWB destinations maintain at similar levels to last week. Production out of the Zhengzhou area (CGO) is currently impacted due to a Covid outbreak and is leading to a decrease in expected volume.
S. China: Rates remain stable and overall demand is low. Some TPEB market charters have been canceled due to weak demand. As we move into November, we see more e-commerce and project volume in the market. For Shenzhen-Hong Kong (SZX-HKG) cross-border trucking, continue to expect two days of additional transit time.