Improving China Airfreight Connections

Earlier in the year we reported on disruptions to cargo in and out of China due to global events, and then more specifically by their harsh lockdown restrictions. Today we see an improvement of the air cargo situation, with the focus being on movements through Hong Kong. Airlines are set to re-introduce more cargo flights connecting China through Hong Kong, following easing of Covid restrictions and changes to quarantine rules.

Cathay Pacific Cargo is ramping-up its freighter flights and focus on sea-air cargo. The carrier was forced to suspend all long-haul cargo flights in the first week of January and rearrange crew schedules, in a bid to up capacity, which has now begun to grow again.

The latest figures from Hong Kong International Airport (HKIA) show a 2.8% year-on-year drop in cargo throughput in April, to 375,000 tonnes. HKIA noted that the decline in cargo throughput was mainly attributed to 6% year-on-year decreases in both imports and exports, due to insufficient cargo capacity.

Meanwhile, air cargo operations at Shanghai Pudong Airport are slowing recovering. While the lockdowns are starting to ease there, there has been a noticeable impact on both manufacturing output and the supply chain. At one point, Cathay Pacific was the sole airline (other than domestic Chinese mainland carriers) operating at Pudong.

The number of closed-loop operators in the cargo area of Pudong Airport has increased to 8,200, and the support units such as ground service, maintenance, cargo terminals, and freight forwarding, have further increased too. There are currently 48 airlines operating cargo flights, with the number of cargo routes restored to 53 – an increase of seven airlines and nine routes on mid-April.

Hong Kong Airlines (HKA) has also been struggling. Earlier this month, the carrier reportedly said the Covid-lockdowns in China had weakened demand for airfreight, leading the cash-strapped airline to ask its pilots to go on leave. One of HKA’s cargo flights to Sydney was cut from a daily service to twice a week because cargo was stuck in Shanghai.

Another challenge has been the restrictions on cross-border trucking between Hong Kong and the mainland. Cathay had run a multimodal trial to transport cargo from Dongguan, via barge, during the embargo – to HKIA’s intermodal cargo ferry pier, which helped keep some cargo moving.

Cathay described the trial as a sea-air cargo “rescue” for Hong Kong. With trucks concentrating on delivering necessities to Hong Kong, there were fewer available to deliver cargo to the airport. So, some enterprising airfreight agents diverted goods onto shipping containers.

Cathay Pacific Cargo services Adelaide, Melbourne and Sydney; here in Queensland, they offer cargo services at Brisbane, Cairns and Wellcamp (Toowoomba).

Toowoomba Wellcamp Airport (WTB) is the home of Queensland’s only dedicated 747-8F International Freighter Service. With flexible customised freight solutions and dedicated to meeting client and cargo needs, the airport is leading the way in developing freighter services for Queensland.

Cathay Pacific’s weekly 747-8F service operates weekly – on a Tuesday – from WTB direct to Hong Kong (HKG). This flight allows connection to Cathay Pacific’s worldwide air cargo freight distribution network. The pattern of the freighter service is as follows:
Hong Kong (HKG) – Sydney (SYD) – Melbourne (MEL) – Brisbane West Wellcamp (WTB) – Hong Kong (HKG).

For more information about import and export airfreight services, contact us here at Colless Young. As licensed Customs Brokers and International Freight Forwarders, we handle all your transport needs, by both air and sea cargo. We are based in Brisbane and offer a complete range of logistics services, including quarantine treatments, warehousing and trucking, through all Australian ports and airports.