ASIA PACIFIC
ANALYSIS
Swings and
This year, the Asia Pacific freight sector has
been anything but predictable, writes the Editor.
According to IATA data,
several Asia-based carriers
(as well as those of the
Middle East, it should be noted)
have reported year-over-year
declines in their cargo traffic for
the summer months. Amongst
them were EVA Air and China
Airlines, along with China
Southern Airlines and Air China.
Singapore Airlines was also on
the list, having witnessed an
ongoing decline in its traffic.
But it has been a case of swings
and roundabouts, when the
bigger picture is examined.
Singapore: going soft, ahead
Singapore Airlines Cargo is
as good a bellwether as most,
being a significant player
within the region. A company
spokesperson related that for
the past financial year (ending
March 31 2019), SIA Cargo
achieved revenue growth of
2.1% year-on-year, with capacity
(measured in available freight
tonne kilometres) growing by
0.8%. On the face of it, this was
a positive performance – but the
carrier staff member goes on to
say that overall cargo demand
has softened on key trade lanes
amid the ongoing trade tensions
and economic uncertainties,
especially in connection with
the US. “This has impacted
our cargo revenue for the first
quarter of the current financial
year,” added the source.
Looking ahead, SIA Cargo
reckons that airfreight demand
is expected to remain soft in the
near term because of trading
uncertainty and pending the
resolution of the ongoing
tariff problems. Yet, “against
that backdrop, we will remain
nimble in pursuing demand
opportunities and managing our
freighter capacity,” concludes
the SIA spokesperson.
Japanese musings
For Japan, things have not
really been very different, as is
explained by All Nippon Airlines
Cargo’s Executive Vice President,
Hiroshi Sugiguchi.
roundabouts ➤ roundabouts ➤
“Air cargo demand was basically quite strong until the end of
2018,” he states. “From last December, however, it then declined
rapidly, especially to and from China, which was mainly affected by
the China-US trade war.”
A network that encompasses not only Asia but also the Middle
East and the US has helped to offset the problems nearer to home,
though.
“We have an extensive global network, served by both belly
capacity and freighter aircraft. In addition, we have expanded the
Japan-Chicago network with airline charters, and blocked space
from other airlines in the past few years. We have also started up a
B777F operation on the Japan/Shanghai Pudong route and we will
start operating our own B777F to Chicago.
“We have received two B777Fs and we began service between
Narita and Shanghai in July; next will be service between Narita and
Chicago, which is due to start on October 29. Our mid-term strategy
is to optimise both the Okinawa hub network that is operated by the
B767F and the Narita/Haneda network that is flown with B767F and
B777F aircraft.”
8 October 2019 www.airlogisticsinternational.com
/www.airlogisticsinternational.com