Weekly Air Operations Update: Shanghai to Europe, US and Australia 13/01/23

Shanghai to London

• Export volume is increasing due to the upcoming Chinese New Year (CNY) holiday
• LHR airport operations are normal
• Most drivers have gone home for CNY which means pick-up costs have significantly increased
• No flight cancellations
• No weather disruptions
• Space is getting tight due to the upcoming CNY holiday
• Market rates are increasing on account of CNY

Shanghai to New York

• Export volume is stable
• New York airport operations are normal
• Most drivers have gone home for CNY which means pick-up costs have significantly increased
• Several flights have been cancelled due to bad weather in East USA
• Space is open
• Rates have increased slightly due to flight cancellations

Shanghai to Los Angeles

• Export volume is stable
• Airport operations are normal
• Most drivers have gone home for CNY which means pick-up costs have significantly increased
• No flight cancellations
• No weather disruption
• Space is open
• Rates are steady

Shanghai to Frankfurt

• Export volume is increasing due to the upcoming CNY holiday
• Operations are normal
• Most drivers have gone home for CNY which means pick-up costs have significantly increased
• No flight cancellations
• No weather disruption
• Due to CNY, space is tight because of increasing volumes
• Market rates have significantly increased since the beginning of January

Shanghai to Melbourne

• The export volume ex Shanghai to Melbourne is stable
• Airport operations are normal
• Most drivers have gone home for CNY which means pick-up costs have significantly increased
• 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
• Operations are normal
• Most drivers have gone home for CNY which means pick-up costs have significantly increased
• 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

Other updates:

• Freight updates
  According to The Economist, global shipping costs are returning to pre-pandemic levels, but many potential supply chain threats could still emerge in 2023. Supply chains have returned to normal due to a shift in consumer demand, especially in the United States, with people spending much less on goods than during the height of the pandemic. However, a recent surge in COVID-19 infections in China could disrupt supply chains again. China’s rapid end to their “zero-covid” restrictions has led to a rise in infections and “worsening supply conditions” in the country.

• N. China:
  Demand remains low and a peak in volume before the Lunar New Year holiday remains unlikely. Some charters in the market have also been cancelled due to the low demand forecast while commercial flights continue to operate as scheduled. TPEB rates have dropped while Far East Westbound (FEWB) rates hold at low levels.

• S. China:
  The market is picking up and space is starting to become congested. We recommend placing bookings earlier in order to arrange quicker uplift. Both TPEB and FEWB rate levels have increased in response to the higher demand. Due to heavy snowstorms in Alaska, some freighter capacity has been canceled. The Chinese government recently announced an ease in Covid restrictions so cross-border traffic is expected to gradually resume.