keynote feature
from Anchorage. At Shanghai, UPS has been enjoying ‘change- of-gauge’ rights, which allow connections from US flights. UPS had a partnership with the Chinese cargo carrier Yangtze River Express, which provided additional connections on the mainland but this relation was ended last year. In 2010, UPS opened its Shenzhen hub, replacing its former Asian hub in the Philippines.
BURGEONING BEIJING Beijing has been serving as the air cargo hub for the Bohai Rim Region, a burgeoning industrial zone which covers Tianjin, Hebei, Liaoning and Shandong. Beijing-based Air China Cargo is one of China’s two largest cargo carriers. In 2006, the airline assumed all dedicated freighter operations from Air China, the 51 percent stakeholder in Air China Cargo. Then, in May this year, Air China Cargo officially became a joint venture between Air China and Cathay Pacific. On the China - US market, the airline provides freighter services between Beijing, Guangzhou and Shanghai, and Chicago, Los Angeles, San Francisco, Portland, Dallas and New York. This complements combination services from Beijing and Shanghai to Los Angeles, San Francisco and New York. “We can offer clients
various options for air cargo transportation to the US,” said a spokesperson from Air
China. We have Beijing as the centre of our bellyhold cargo network and Shanghai as the all-cargo operation centre. Combined with the cargo network of Cathay Pacific, we can also transit the cargo through Hong Kong to the US.”
PEARL RIVER HUB Guangzhou, meanwhile, is the air cargo hub for the Pearl River Delta Region, a veritable factory for the world for machinery, electronics and textiles as well as the largest consumer market in China. Dongguan to the east of Guangzhou is a huge manufacturing centre. Indeed, there is a Chinese saying: “A traffic jam in Dongguan causes shortages in stocks all over the world.” Guangzhou-based China Southern is the only carrier of the
three largest Chinese airline companies not to have established a dedicated cargo unit. The carrier provides dedicated cargo service from Shenzhen to Chicago (via Anchorage), with its two US-China weekly frequencies. In addition to freighter services to Chicago, the carrier also provides combination services between Guangzhou and Los Angeles.
Sixth freedom: some of the outsiders looking in
Third-country carriers also have a major presence in the China- US air cargo market. Various freedom rights have allowed a number of carriers to operate either from their home countries via China to the US (and vice versa) or from China via their home countries to the US (and vice versa). As a result, these foreign carriers can offer either one-stop or
even non-stop service in the China - US market. In addition to dedicated cargo services, the carriers can utilise significant amounts of bellyhold capacity on their passenger flights. Both of the major carriers in Taiwan, China Airlines and EVA
Airways, provide all-cargo service between Taipei and the US employing sixth freedom rights for cargo connecting from China. Both China Airlines’ partnership with Yangtze River Express and EVA Airways’ partnership with Shanghai Air Cargo help to provide connecting services between the mainland and Taipei. China Airlines and EVA Airways also both utilise the bellyhold cargo capacity of their widebody passenger services between Taipei and the US In Japan, Nippon Cargo Airlines operates freighter services
between the US and Tokyo-Narita, Nagoya and Osaka airports in its home country. Finnair Cargo started all-cargo flights to Shanghai in co-operation with World Airways and it began
14 AIR LOGISTICS CHINA
adding frequencies to New York from 15 June. Operating twice a week on a New York - Helsinki - Shanghai routeing, the service uses MD-11 freighters able to carry an 80-ton payload. Finnair Cargo is also operating to Hong Kong twice a week. “Growing cargo demand in the Asian and US markets gives
us the opportunity to expand capacity between Asia and Europe, and add one additional weekly frequency to New York,” explained Finnair Cargo vice president Pertti Mero.
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