DOT reimposes charter limits on US, China flights

The U.S. Department of Transportation (DOT) has notified U.S. carriers that charter opportunities between the U.S. and China Zone 1 cities are, once again, limited to 75 one-way charter flights from Aug. 1 through July 31, 2022. Shanghai (PVG), Beijing (PEK) and Guangzhou (CAN) are classified as China Zone 1 cities, while all points in the Chinese provinces of Fujian (FOC), Guangdong (excluding Guangzhou), Hebei (FJW), Jiangsu (NKG), Shandong (TNA), Tianjin (TSN) and Zhejiang (HGH) classify as China Zone 2. [caption id="attachment_73904" align="alignright" width="450"] Photo courtesy of Kalitta Air.[/caption] Under the updated U.S.-China Air Transport Agreement, charter allocations for the 75 Zone 1 charters and 75 Zone 2 charters will be made on a first-come, first-served basis consistent with previous years since the 2007-2008 charter year, according to the DOT notice. On Aug. 12, 2020, the DOT issued a notice stating that the 75-flight limit of charters between the U.S. and China Zone 1 would be waived by the Civil Aviation Administration of China (CAAC) for the 2020 and 2021 charter year due to increased charter demand related to COVID-19. The ruling has no impact on scheduled flights and does not affect dedicated services contracted by freight forwarders, Neel Jones Shah, executive vice president and global head of airfreight for Flexport, told Air Cargo World. However, he said it might further constrict capacity on trans-Pacific trade lanes. “Our Flexport freighters are filed and operated as a scheduled service, so this ruling does not impact us in any material way,” said Shah. “I do suspect that this ruling could further constrict capacity on the trans-Pacific trade lanes as charters will now be capped at 75, where this number has been exceeded rather significantly over the past two years.” While it is early to speculate, Shah added that the cap could mean longer transit times and higher rates down the road, depending on the level of demand.

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