Weekly Air Operations Update: Shanghai to Europe, US and Australia 19/05/23

Shanghai to London

• Market rates rose again this week due to continued ecommerce shipments
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Rates are up slightly this week

Shanghai to New York

• Market rates rose again this week due to continued ecommerce shipments
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• East USA rates are increasing

Shanghai to Los Angeles

• Market rates rose again this week due to continued ecommerce shipments
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• West USA rates are increasing

Shanghai to Frankfurt

• Market rates rose again this week due to continued ecommerce shipments
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Rates are up slightly this week

Shanghai to Melbourne

• Space on the Australia route is still tightening due to electronics manufacturers launching new products, and prices are rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is currently open
• Air rates are rising slowly

Shanghai to Sydney

• Space on the Australia route is still tightening due to electronics manufacturers launching new products, and prices are rising
• Airport operations are currently normal
• Hauliers are working as normal
• No flight cancellations
• No weather disruptions
• Space is open
• Air rates are rising slowly

Market intel

• New China-Europe capacity will depress air freight rates

  THE increasing number of air passenger services between China and Europe is likely to have a negative impact on air freight rates, reports London's Loadstar.

  This is because the air freight industry already has excess belly capacity due to low demand.

  In the UK, there has been a significant surge in these services in the past six months, with the number of weekly flights from China to Heathrow increasing by a factor of 10, from five to 54.

  While passengers and shippers benefit from the increased capacity, forwarders are raising concerns about how carriers will utilise the additional space for air freight.

  "Looking at the Chinese market and the new capacity that has already arrived and the additional capacity due, you have to ask what the cargo teams will stick in it? Outbound, it'll be e-commerce, but inbound, who knows?" said a forwarder.

  "You also have to remember that China operates pop-up airlines to coincide with certain pockets of demand, like students needing flights to overseas universities."

  According to Heathrow Airport, most carriers have resumed their pre-pandemic services, while some plan to increase their frequencies in the coming months.

  This trend is not unique to London, as Manchester has also announced a return to pre-pandemic service levels from Hainan Airlines.

  The increase in passenger services and belly capacity has led to doubts about the wisdom of airlines investing in full-freighter aircraft, especially as global passenger demand is expected to grow significantly.
  
  

• N. China
  

  Although airlines have resumed flights, a big launch of ecommerce goods and electronics products are being exported, resulting in tight space and high freight rates.
  
  

• S. China

  The air freight market is very hot this week due to a big launch of ecommerce goods and electronics products, which is leading to tight space conditions and an increase in air rates.