Weekly Air Operations Update: Shanghai to Europe, US and Australia 17/02/23

Shanghai to London

• With factories gradually resuming work after the CNY, the volume of goods in the air market is slowly rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Air freight prices have been rising due to increased volumes; rates are likely to increase again next week as ecommerce companies start shipping

Shanghai to New York

• The volume of goods to the US market has not improved as yet; freight rates are therefore at relatively low levels
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• US rates are not likely to fluctuate much at the moment

Shanghai to Los Angeles

• The volume of goods to the US market has not improved as yet; freight rates are therefore at relatively low levels
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• US rates are not likely to fluctuate much at the moment

Shanghai to Frankfurt

• The volume of goods to the Europe market has not improved as yet; rates are therefore at relatively low levels
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Rates at low levels

Shanghai to Melbourne

• With factories gradually resuming work after the CNY, the volume of goods in the air market is slowly rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Air freight prices are slowly rising with the reopening of the factories and the current launch of e-commerce goods

Shanghai to Sydney

• With factories gradually resuming work after the CNY, the volume of goods in the air market is slowly rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Air freight prices are slowly rising with the reopening of the factories and the current launch of e-commerce goods

Market intel

• Carriers buy more freighters, despite 'paradigm shift' in air cargo
  AIR cargo capacity may still be down by as much as 10 per cent on pre-pandemic levels, but over-supply could soon be the story, as freighter orders surge, say industry leaders.

  Speaking at the recent World Cargo Summit in Abu Dhabi, Etihad Cargo senior vice president, Martin Drew, said freighter supply was at its highest for more than a decade, with new orders and passenger-to-freighter conversions set to hit the market.

  Despite the threat of overcapacity, carriers do not seem keen to cut back on their orders. Mr Drew said Etihad Cargo had ordered seven A350Fs and 777 passenger-to-freighter conversions.

  The push for new aircraft has been exacerbated by the pressure on airlines and others operating aircraft to reach net-zero objectives.

  CEO of all-cargo carrier Silk Way West Airlines Wolfgang Meier said: "Going for a greener tomorrow means, in practice, a complete renewal of our fleet and we have placed orders for five 777Fs and two A350Fs. But this presents questions, including what are we going to do with our existing aircraft?"

  Some delegates felt there was sufficient long-term air cargo growth potential to absorb the additional capacity, others were more cautious, believing that in this "already depressed" market, traffic would fall.

• N. China

  Market demand is low and being outpaced by supply. Rates remain unchanged from last week.
• S. China
  Demand continues to be low after the LNY holiday with rates having dropped from the week prior..