Weekly Air Operations Update: Shanghai to Europe, US and Australia 02/12/22

Shanghai to London

Watch out for the upcoming holiday season, which might create bottlenecks both in the air and on the ground, Terminal congestion in London Heathrow (LHR) might lead to delays.
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
Space is readily available but schedule reliability is affected by new outbreak of Covid-19 in China
Rates are stable. Ongoing pressure on spot rates due to low demand.

Shanghai to New York

Export demand to East USA remains steady
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 opening up further.
The rates have slightly increased due to a large launch of E-commerce cargo.

Shanghai to Los Angeles

Export demand to West USA remains steady.
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 opening up further.
The rates have slightly increased due to a large launch of E-commerce cargo.

Shanghai to Frankfurt

Overall, demand levels remain constant .
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 available in the market has decreased to usual Q4 levels, but it remains sufficient to meet current demand.
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

Trade Growth: For a large collection of major economies, goods trade dipped from Q2 to Q3. The dip comes after a two-year stretch of trade growth that differed markedly from the decade before and that took trade values to new heights.
N. China: Due to low demand in the market commercial flights have been canceled to reduce the supply imbalance. Rate levels have also dropped from the previous week, however, the low demand trend is expected to continue.
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.