Weekly Air Operations Update: Shanghai to Europe, US and Australia 25/11/22

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, but direct carriers such as MU and CA are occasionally having the issue of traffic-rights rejection by the UK government
• No weather disruptions
• Capacity is open in North China and capacity in South China is improving
• The rates of North China are at a low level; South China rates have also been decreasing

Shanghai to New York

• The volume of e-commerce cargo has been increasing this week, leading to an increase in market rates
• 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 open
• Rates have slightly increased due to the aforementioned increase in e-commerce cargo

Shanghai to Los Angeles

• The volume of e-commerce cargo has been increasing this week, leading to an increase in market rates
• 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 open
• Rates have slightly increased due to the aforementioned increase in e-commerce cargo

Shanghai to Frankfurt

• Export volume to Europe is stable this week
• 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.
• Current market rates are at a slightly increased level

Shanghai to Melbourne

• The export volume ex Shanghai to Melbourne is stable
• 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.
• Market rates remain the same as last week

Shanghai to Sydney

• The export volume ex Shanghai to Melbourne is stable
• 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
• Market rates remain the same as last week

Market Intel

• Consumer demand is not falling off a cliff as some have predicted: According to BNN Bloomberg, this holiday shopping season seems extremely ordinary for consumers; welcome news after many economists predicted a massive decline in consumer demand for the 2022 holiday shopping season. Consumption forecast has shown a 1% increase in consumer demand this holiday season, pointing to stability and modest growth.
• N. China: TPEB demand is picking up slightly due to an increase in month-end shipping orders and rates have increased compared to last week. Far East Westbound (FEWB) demand and rates remain stable.
  
• S. China: Market rates remain at similar levels to last week. The Covid outbreak in the Guangzhou area continues to affect manufacturing operations, resulting in cargo output delays.