Weekly Air Operations Update: Shanghai to Europe, US and Australia 26/05/23

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

• Saudia, Cainiao make room for Alibaba e-commerce shipments

  SAUDIA Cargo has new 12-month space and service commitment agreement with Cainiao Network, the logistics arm of Alibaba Group, reports Singapore's Payload Asia.

  The deal, which covers the period from April 2023 till April 2024, exclusively secures air freight space for Cainiao on select Saudia freighter flights from Hong Kong to Riyadh and Liege.

  An official signing of the new agreement was held in Munich, which Saudia said demonstrates the airline's 'ongoing commitment to delivering reliable and efficient air freight services to one of the world's leading e-commerce logistics corporations.’

  The extended partnership provides Alibaba's logistics unit with increased access to Middle Eastern markets and allows Saudia Cargo to benefit from the growing global e-commerce market.

  Saudia said the success of last year's cooperation agreement with Cainiao allowed the carrier to achieve significant growth in e-commerce shipments.

  The airline has increased its capacity and the number of cargo flights to destinations in the Middle East, Africa, Asia, Europe and North America.

  Saudia has been adding to its portfolio of cargo services and recently struck a deal with Tower Cold Chain in April to add more cold storage solutions for the pharma and life sciences sector.

  Together with Cainiao, Saudia is also exploring new lanes from Hong Kong and China to the Middle East, Africa and possibly Latin America in the long term.

• N. China
  

  Runway maintenance at Shanghai continues through early summer, with airport officials estimating the impact being ~10% capacity on CN -> US and ~25-30% capacity on CN -> EU. There is still enough capacity to move the demand from Shanghai and no backlog as of now but rates from China are going up as a result.
  

• S. China

  As the export volume of e-commerce continues to rise, the air freight space in the South is still very tight this week, and the price is at a relatively high level.