Weekly Air Operations Update: Shanghai to Europe, US and Australia 09/12/22

Shanghai to London

• Terminal congestion in London Heathrow (LHR) expected to cause delays for imports
• 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 getting tight due to the coming of Christmas holiday
• The market rates are slightly increased compared to last week and are expected to increase to a higher level from next week

Shanghai to New York

• Export demand to East USA remains has risen
• 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. Lead days are expected to increase depending on demand spikes into major US hubs
• The rates have slightly increased due to a large launch of e-commerce cargo

Shanghai to Los Angeles

• Export demand to West USA has risen
• 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
• CZ cancelled the flights ex CAN to LAX from 10 December
• No weather disruptions
• Capacity available in the market has decreased to usual Q4 levels, but it remains sufficient to meet current demand. Lead days are expected to increase depending on demand spikes into major US hubs

• The rates are expected to increase from next week due to the upcoming Christmas holiday

Shanghai to Frankfurt

• Watch out for the current holiday season, which might create bottlenecks both in the air and on the ground
• 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 stable

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 Sydney 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

• What slowdown? This week’s data on U.S. October personal income and outlays showed little sign of an economic slowdown. Real personal consumption expenditures were up by 0.5%, and real disposable personal income was up by 0.4% for the month. If the U.S. economy is contracting, it’s not yet showing up in consumption numbers.
  
• N. China:Demand has picked up slightly, and rates have also increased. However, this is expected to be a short-term surge, and demand will likely decrease before the Christmas holiday.
  
• S. China: An increase in demand for both TPEB and FEWB destinations has resulted in rates increasing as well. With the Guangzhou area still affected by Covid restrictions, shipment output remains at low levels.