China will have a significant impact on air cargo transportation earlier this year

The two-week Chinese New Year and the Beijing Winter Olympics will change the cost and volume of air cargo in early 2022.

According to official statistics, December 2021 ended with record rates for air cargo transportation on major trade routes. The latest data from the Baltic Exchange Airfreight Index (BAI) show that average prices from Hong Kong to North America in December reached their highest level in the year at $ 12.72 per kg. Air fares from Hong Kong to Europe also showed an annual high, rising to $ 8 per kg. And the prices on the direction Frankfurt am Main - North America rose to $ 5.21 per kg. Thus, compared to the same period in 2020, the average rates for air cargo transportation in 2021 increased depending on the destination by 30-60%.

It is difficult to answer unequivocally what the beginning of 2022 will be for the global aviation industry. It can be expected that the upcoming Chinese New Year and the holding of the Winter Olympics in Beijing will have an additional impact on the situation. For the New Year holidays, China will officially leave from January 31 to February 6, and the Olympics will begin on February 20. Hopefully this will be a good time for cargo airlines like ZetAvia. I suppose that the upcoming events in China will primarily affect the supply chain, which is likely to affect the price dynamics upward.

I will add that the pandemic has pushed the airports of various countries to accelerate the development of infrastructure and the rapid development of new destinations. Let me cite China and Qatar as examples. Launched in 2021, the Shanghai Pudong Airport expansion project with a planned new cargo bay has reached its fourth construction phase in just a year. I note that in 2020 this largest aviation hub in East Asia experienced a shortage of cargo due to the high demand for personal protective equipment, staff reductions and flight cancellations. Due to the opening of six new international destinations in 2021 and the expansion of terminals, the cargo turnover of Qatar's Hamad airport has grown by more than 20%. In 2022, the Doha-based airport expects further growth in air cargo traffic and an increase in annual capacity to nearly 60 million passengers.

Oleg Sergeev