Dozens of cargo flights canceled at LAX as COVID-19 takes toll

As peak season heats up, at least thirty-eight trans-Pacific freighter and cargo-only flights scheduled to arrive in Los Angeles (LAX) this week have been canceled due to a COVID-19 outbreak at the key California airport, according to information from freight forwarders, airlines and cargo handlers who spoke to Air Cargo World . [caption id="attachment_93499" align="alignright" width="450"] Freighter aircraft parked at an ORD cargo terminal. Photo/O'Hare International Airport[/caption] COVID is also limiting cargo flights at Chicago O’Hare Airport (ORD) this week, although to a lesser degree than at LAX. An estimated 3,000 tonnes of capacity have been removed from this week’s schedule, primarily affecting LAX and ORD, and further constraining capacity during the last leg of the peak season rush. The busiest day of the year for airfreight varies by airport, but the traditional peak season months of October through December are expected to see a surge in cross-border shipments this year, as the pandemic has altered traditional retail to favor e-commerce during the holiday shopping season. While the peak season is still ongoing, DHL Express has forecast that its cross-border shipments inbound to the U.S. would increase by 50% year over year. Carriers based in mainland China will have the most frequencies removed from this week’s schedule. Beijing-based Air China has canceled thirty-two flights between Dec. 1-11 that were to be operated using a mix of 777 freighters and 777 passenger freighters. In a note to freight forwarders, the carrier cited “serious congestion” at its LAX ground handler. China Southern has also notified forwarders that it may reduce four weekly 777 freighter flights, two each to LAX from Shanghai (PVG) and Guangzhou (CAN). Additional cargo-only flights utilizing passenger aircraft, and freighter flights serving the airport may be subject to cancellation in the coming weeks due to COVID-related complications. Multiple forwarders and carriers with cargo operations at LAX confirmed to Air Cargo World that a rising number of infections among ground-handling staff based at the airport are starting to lead to flight cancellations. The roughly 1,900 tonnes of capacity lost at LAX for the week would amount to about 4.1% of the average weekly tonnage at the airport during December 2019. However, LAX has more than made up for the lost cargo capacity normally available in the bellies of passenger aircraft with an increase in cargo-only flying. For its most recent reporting month of October, LAX’s cargo handle rose 16.8% year over year to 214,310 tonnes, and year-to-date volumes through October increased YoY by 4.1%. Cancellations are impacting trans-Pacific cargo service into ORD for a capacity loss of about 1,275 tonnes this week, due to aircraft maintenance requirements and positive tests among airline crews leading to crew shortages. China Southern notified forwarders of the cancellation of five weekly 777F flights to ORD from PVG, and National Airlines has reportedly canceled four flights into ORD from PVG and Zhengzhou (CGO) after some crew members tested positive for COVID. Alongside the cancellations, carriers and handlers operating at ORD have reported substantial challenges in meeting ground-handling requirements there amid the pandemic due to staffing shortages. Swissport, which handles trans-Pacific cargo for carriers, including China Eastern, Cargolux and China Cargo Airlines at ORD, has begun collaborating with some local bonded warehouses to handle trans-Pacific cargo arriving at the airport. Regarding the COVID-related flight cancellations, Mike Piza, VP of corporate sales of APEX Logistics, told Air Cargo World , “This is a real challenge for forwarders with operations in the U.S. Capacity is one component, but destination handling, and the ability to break down cargo and move cargo, once it arrives at its destination, we look at as almost equal to the capacity conversation.” Some carriers with operations at LAX and ORD have managed to minimize or avoid schedule disruptions. Hong Kong-based Cathay Pacific continues to operate freighter flights according to schedule. In the case of LAX operations, Cathay Pacific is adding charter flights utilizing cargo-only passenger aircraft and freighters beyond its published schedule, according to Fred Ruggiero, VP Cargo Americas of Cathay Pacific. Japan-based Nippon Cargo Airlines performs its own handling at ORD, and has a similar arrangement at LAX. “Where we are self-handled with our own exclusive staff provided by AGI, we have not had any operational issues,” said Shawn McWhorter, president of NCA Americas. Minimal infections among NCA and AGI staff are a result of “strict [social distancing and sanitation] policies being enforced at every location, even in locations where the local government or local regulations do not require it.” Airfreight rates have yet to respond to tightened trans-Pacific capacity. At $6-$7 per kilo between Asia and the United States, rates are high, but “are nowhere near where they were during the PPE phase a couple of months back,” said Piza. If COVID outbreaks among handlers and flight crews become more widespread, rates are expected to climb.

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