question of the month
The Chinese air freight market has started this year quite disappointingly; how do you see it developing over the next few months?
The Chinese air freight market has started this year quite disappointingly; how do you see it developing over the next few months?
JAMES FERNANDEZ
Vice president, sales and marketing, CHAMP Cargosystems
“The China paradox continues apace – how does it balance its position of power on the global stage; its role as a consumer of raw materials to fuel its export production capability; its increasingly symbiotic relationship with global markets; and, ultimately, its necessity to manage cultural and, increasingly, economic diversity? “Economically, two
specific areas require attention in 2011. First, China’s ability to control multiple domestic economic bubbles and, second, managing the uncertainty and impact of rising commodity prices, particularly oil and grain. “This is quite a challenge
SAMER JRAB
Cargo development manager, Geneva International airport
“We have a twice-weekly B747-400 freighter service operated by Jade Cargo that connects in both directions with the carrier’s Shenzhen hub and I can reassure that there has been no blip in our air freight business with China in the early months of 2011. “I was talking to people in
“A more focused, mutually beneficial and globally entwined ‘guanxi’ is now in play”
for China’s political apparatus. Moreover, corporately, these economic and cultural challenges are further compounded by the emphasis on personal connections – ‘guanxi’. However, the shift from foreign investment being seen simply as a mechanism for acquiring foreign know-how to more interdependent relationships, generating both local and global success, in turn is driving structural reforms and more transparent corporate governance. “China continues to be an exciting and demanding
environment, one that requires a good understanding and respect for China’s traditions. The fundamentals for success remain a ‘critical mass’ local presence and a specific China focus with organisations seen as strong and bringing expertise, ultimately ensuring that local partners are part of the solution and not an extra part of the complexity. “A more focused, mutually beneficial and globally entwined ‘guanxi’ is now in play.”
Hong Kong at the end of last year and they were not positive about the early months of this year, but the loads to and from mainland China on the Jade freighter services have remained good. “So, if you ask if our
cargo business with China is coming back, I have to say that out of Geneva it never went away, neither at the present time nor at any time during the recent economic downturn. “There is a sizeable market for Swiss exports in China,
“The loads to and from mainland China on the Jade freighter services have remained good”
so the directional balance on the freighter service is still good in both directions. The Chinese love high-quality Swiss workmanship, like watches or technology products, and they have a need for pharmaceuticals. These are all prime air freight export commodities from Geneva. “As none of these items can be described as being
cheap, there is obviously enough money in China to buy high-end consumer products from the West. So, in Geneva, we do not see China as being a poor country. In fact, we export more goods out of Geneva to China than we import in the other direction for our own market. “We do not have direct passenger links to China from
Geneva, as we are well connected to the country by a number of Middle Eastern carriers through their hubs. Nonetheless, we are always talking to the major airlines about the future possibilities of non-stop services.”
AIR LOGISTICSCHINA 27
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