Airfreight demand ticks up before Lunar New Year

With the Lunar New Year beginning Jan. 22, carriers and forwarders alike are preparing for an uptick in air cargo demand in and out of China, after the country lifted COVID-19 pandemic restrictions in time for the holiday. Freight forwarder Kuehne+Nagel typically experiences increased demand a few days before Lunar New Year’s commencement, but this year demand began rising early, Wong Siew Loong, president at Kuehne+Nagel Asia Pacific, told Air Cargo Next . “This year however, due to an excess of production output due to early factory closures, we've witnessed a rise in demand almost two weeks before the festive season,” Loong said. Kuehne+Nagel is “cautiously optimistic” about a rise in volumes, he noted. While the economy has improved post-pandemic and inflation is easing, interest rates have remained high, putting pressure on volume growth . The next six months’ volumes coming in and out of China will be determined by demand from the rest of the world, primarily the U.S. and Europe, Loong added. The types of cargo driving demand include fashion, e-commerce and high-tech consumer products, some of which are holdovers from the after-Christmas season in the U.S. and Europe, he said. Carriers increase connectivity [caption id="attachment_96469" align="alignright" width="407"] Photo: Cathay Pacific[/caption] Carriers are gearing up for the holiday by increasing flight frequency to and from Mainland China, and in some cases reinstating or adding new routes. Cathay Pacific more than doubled passenger flights to China starting Jan. 14, with 61 return flights per week between Hong Kong (HKG) and 13 Chinese cities, further increasing bellyhold cargo capacity, according to a Jan. 5 release. Cathay previously flew 27 flights per week from HKG to Mainland China, and 50 flights per week to HKG, the release stated. While Lunar New Year is fast approaching, China’s reopening on Jan. 8 following the end of its zero-COVID-19 policy was a major factor in the route additions, a Cathay Pacific spokesperson told Air Cargo Next . “The links between Hong Kong and the Chinese Mainland are incredibly strong and the Greater Bay Area in particular operates on a model of inter-reliance,” the spokesperson said. “Easing of restrictions will only serve to stabilize supply chains, reduce costs and increase reliability across multiple industries.” Still, Lunar New Year “plays an important role in the aviation cycle,” the spokesperson noted, adding that this year’s holiday will be no different. Other carriers have increased flights in and out of China, including China Airlines, which began an eight-times-weekly service from Christchurch International Airport (CHC), New Zealand, to Taipei Taoyuan International Airport (TPE) on Jan. 5. The service, offering 800 tonnes of capacity, will transport high-value cargo such as live oysters, lobsters, salmon and cherries, all of which are in high demand during the holiday, according to a Jan. 5 release. The TPE service will continue on alternate days until Jan. 19. Etihad Cargo will increase its Chinese capacity at the tail end of the Lunar New Year, with services between Abu Dhabi (AUH) and Shanghai (PVG) beginning Feb. 2, according to a Jan. 18 release. Other carriers to increase China-bound flights this month include MSC Air Cargo and Ethiopian Airlines. Kuehne+Nagel ranked No. 1 in Air Cargo Next 's latest Power 25 ranking of the world’s top freight forwarders based on 2021 tonnage.

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