Quote

Blog

The recovery of air freight in the Yangtze River Delta region

10 Nov 2022

By Jennifer Chang      Photo:Pixabay

The 5th China International Import Expo is held in Shanghai from November 5th to 10th, 2022, with a total of 145 countries, regions and international organizations participating. With the continued popularity of cross-border e-commerce, aviation resources have become a key resource for the next five years. Various signs show that the recovery trend of the international and domestic air freight market in the Yangtze River Delta is becoming more and more obvious. Traditional e-commerce, express logistics companies, and airlines are competing for deployment, and freight forwarders have increased their air capacity.

 

Why has the Yangtze River Delta become  " a place contested by all strategists "? The Yangtze River Delta region, referred to as the Yangtze River Delta , includes 41 cities in Shanghai, Jiangsu Province, Zhejiang Province, and Anhui Province. It is located in the lower reaches of the Yangtze River in China, bordering the Yellow Sea and the East China Sea. It is an alluvial plain formed before the Yangtze River entered the sea. In 2020, the GDP of the Yangtze River Delta region will be 24.5 trillion yuan, creating nearly 1/4 of China's total economic output and 1/3 of China's total import and export volume with less than 4% of the country's land area. A very important reason why the development of cargo transportation in the Yangtze River Delta region is particularly dazzling is that the rapid development of freight transportation in the Yangtze River Delta region as a developed manufacturing area in China meets the needs of industrial upgrading, and there is a strong demand for air cargo. The latest data from the Shanghai Airport Border Inspection Station shows that in the third quarter of this year, the number of inbound and outbound cargo flights at Pudong Airport reached 17,800, an increase of about 34.8% over the second quarter and an increase of about 6.6% over the same period last year. In September, the volume of cargo and mail transportation was 276,700 tons, a year-on-year increase of 9.54%. Among them, the cargo and mail transportation volume of overseas routes reached 261,800 tons, an increase of 11.50% year-on-year.

 

It has entered the final stage of the fourth quarter. Since China government implement the Zero-COVID policy and the economy has suffered serious setbacks this year. E-commerce promotion Double 11 will be launched ahead of schedule. Everyone is concerned about whether this e-commerce event can stimulate domestic demand. The China International Import Expo is an important exhibition for China to expand its overseas market. The most popular products sold overseas from the mainland are heating products in Q4. China has been emphasizing the surge in heating commodity orders under the European energy problem. Hats, scarves, and gloves, which are known as the three small heating items, are also benefiting from this business opportunity. The popularity may continue until the end of November. In order to speed up transportation, many manufacturers also choose more expensive air freight or use the China-Europe train. It takes almost 7 days by air transport and 20 days by trucks. Recently these volumes, either by air or by truck, have tripled from normal. China continues to strengthen market confidence, and indicators for V-shape economic resversal are shown in Shanghai, the index city.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.

Get a Quote Go Top