COVID-19 Impact on International Air Cargo Transportation

The sharp decrease in international flights has a high impact on the supply chain of international air cargo transportation. Recently, with the outbreak of the COVID-19 pandemic, many passenger flights and freight airlines have been suspended, resulting in limited domestic export cargo capacity. With the gradual resumption of production in most areas of the country, the demand for export transport capacity is also overgrowing.

Due to the surge of cargo volume and the shortage of international flights, DHL, UPS, and other express companies began to charge emergency surcharges, and the initially expensive express charges will usher in a new increase.

FedEx charges for temporary route adjustment

• In order to better cope with the growing export demand and limited transportation capacity, and ensure to provide high-quality services as always, FedEx Express will charge temporary route adjustment fees for China's exported goods to North America and Europe to make up for the growth of operating costs. These adjustments to the operating network ensure that it can better provide you with services in a volatile market environment Provide quality service.

DHL charges an emergency surcharge

• Faced with the coronavirus challenge, DHL is constantly promoting the continuous business plan, monitoring and responding to a rapidly changing market environment. To ensure the continuity of operations and provide customers with the same quality service as before, DHL Express will temporarily charge an emergency surcharge for all international time-limited delivery (TDI) express mails from April 1, 2020, until further notice.

UPS charges a peak season surcharge

• UPS is closely following novel coronavirus outbreaks related developments and will continue to carry out business to support customer needs. The goal is to ensure that companies and customers have access to the transport services they need during this period of increasing air demand. As of April 5, 2020, until further notice, ups will implement a temporary peak season surcharge, which applies to the use of UPS Worldwide Express¹, UPS Worldwide Express Freight, and UPS Expedited shipments originating from China Mainland or Hong Kong SAR to North America² and Europe regions³.

Airfreight is three times higher than that of the same period last year

• Since the beginning of March, the rate of air freight has skyrocketed. Now, a large number of international air transportation routes are suspended, and the price has doubled several times. A large number of epidemic prevention materials need to be exported. However, more and more airlines around the world have suspended the number of flights, resulting in a more difficult position. 
• The International Air Transport Association (IATA) updated its analysis of the impact of the COVID-19 pandemic on global air transport revenues. Due to strict travel restrictions and the expected global economic downturn, IATA now estimates that passenger revenue in the aviation industry could plummet by $252 billion, a 44% decrease from 2019.
• Mr. Alexandre de Juniac, director general and CEO of IATA, said: "The aviation industry is facing the most serious crisis. In a few weeks, the worst-case situation we had predicted is better than our latest estimate. If the government does not take immediate relief measures, the aviation industry will no longer exist. Some governments have started to act, but more countries need to follow up."

The tide of "modified aircraft" is coming

• On the part of airlines, due to a large number of flights grounded, the survival pressure of enterprises is vast. To alleviate the pressure of freight capacity shortage, many foreign airlines began to use passenger aircraft to carry out freight transportation.
• In China, at present, there are not many companies with full cargo aircraft. In addition to the three state-owned airlines and Jinpeng airlines under HNA, the capacity of full cargo aircraft mainly comes from SF air and Yuantong airlines.
• For example, the business volume of SF air, which has 71 cargo planes at present, has increased dramatically since the coronavirus outbreak, while the logistics of China Eastern has no spare space. The State Council's support for the new deal will make the existing freight carriers more favorable, and accelerate the pace of many airlines' changing from a passenger flight to a freighter.

What's the difference between PAX flight and freighter?

1. Generally, airliners use luggage, postal parcels and small quantities of goods (bulk goods). Passenger flight can't receive large quantities of goods, especially large (over length, height, and overweight) goods. The freighter can accept large goods (including large amounts of large goods). A Pax flight has higher requirements for security. Many dangerous goods can only be transported by freighter, not by pax flight.
2. There are relatively few passenger spaces, especially for narrow-body aircrafts with a single channel. The doors of narrow-body aircraft are very narrow, and slightly larger cargo or pallet cargo cannot be loaded. Small cargo bulk can consider passenger aircraft. However, the freighter space is relatively large, which can easily hold 2,300 cubic meters, or even more.
3. There is a big difference in the design of passenger and cargo doors. Freighter planes are only equipped with fewer boarding doors and larger cargo doors, which are generally distributed in the front and back two cargo compartments and the lower cargo compartment. The height of these doors is usually more than 2 meters, and the width is more than 3 meters, which can carry large-sized cargo.
4. The loading methods of passenger aircraft and cargo aircraft are different: passenger aircraft generally use baggage trailers to transport checked baggage or articles from the terminal or supervision warehouse to the apron and then carry them on the aircraft by baggage conveyor car. The cargo loading of cargo planes mainly uses lifting platform car. After the cargo is transported to the cabin door height, the roller on the platform will transport the cargo into the aircraft cabin. Of course, it's not absolute. Many airliners are also loaded with platform trucks.

In February, GE Healthcare began to transport the medical goods by charter to Europe and the United States, ensuring the smooth transportation of shipments. It is hoped that with the gradual control of the epidemic, more and more countries will lift the restrictions on airliner flights, so that the air transport of the international supply chain can return to normal.

Contributor: Catherine Xu

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