Air Freight status update: PVG, HKG and FRA airports

The air freight market remains challenging after the China Golden Week. Through this update, we would like to give you a brief overview of our major air hubs in China and Germany.

Shanghai PVG and other airports in China:

The export demand from China increased by 30% during the Golden Week compared to previous weeks. Overbooking continues after the holiday.
At Shanghai PVG airport, ground handling capacity remains at 60-70% of the normal level.
Alternate airports in China including Zhengzhou (CGO), Beijing (PEK) and major Southern Chinese airports are under pressure, therefore, alternative routings are hardly available.
Most of the carriers are not offering additional capacities for both westbound and eastbound, so space is scarce and rates are staying on a high level.
In Hong Kong (HKG), the air freight market has been disrupted by two typhoons in seven days. As a result, many flights have been cancelled and the recovery process is underway.
On top of the adverse weather conditions, COVID cases were reported in the largest cargo handling agent in Hong Kong airport, leading to a reduced handling capacity and additional flight cancellations.

Frankfurt airport (FRA):

At Frankfurt airport, Frankfurt Cargo Services (FCS), the largest Airline Handling Agent in Frankfurt, is currently facing some major issues on the import handling. Equipment is only available to a limited extent and, therefore, resulting a slight backlog.
A change in the customs process that requires complete and correct data submission from the airlines to avoid single handling of each shipment has led to delays in cargo handling.
Some airlines have not yet fully implemented the necessary adjustments which ended up in an increasing number of shipments needed to be handled in a ‘manual’ procedure causing massive backlogs.
The situation at FCS is slowly improving but it has to be expected that it will take approximately 8 – 10 days to clear this backlog.
In the meantime, customs authorities agreed to temporarily suspend the new process until the end of this month.
Due to this, newly arriving shipments can only be handled with limited delays.
Other Handling Agents at Frankfurt are also reporting a critical situation and have already taken measures such as shortening delivery times for export.

At DACHSER, our air freight network capabilities stay robust and resilient and we are working restlessly to keep it stable. Should you have any questions, feel free to get in touch with your local representative of DACHSER who will be happy to assist you.

DACHSER worldwide

You might also be interested in

01/14/2020

Chinese New Year (CNY) is one of the most impactful events to international trade. In 2020, January 25th will be the first day of CNY, known as the “Year of the Rat”. The Lunar New Year is also celebrated in other Asian countries such as Vietnam and Korea also at the same time. This is typically a time when Asians travel and visit relatives to celebrate the festivities with loved ones. For instance, some 80 million Chinese workers, most from urban areas along China’s coast, travel back to their rural hometowns.

Read

02/24/2022

Peace and the free movement of goods are fundamental prerequisites for the positive, free development of all societies. In this spirit, Dachser has grown as an international logistics provider over the past decades. We therefore deeply regret the escalation of the military conflict in Ukraine. Among other things, the conflict will also have a substantial impact on supply chains in Eastern Europe.

Our first priority is the safety of all drivers transporting consignments on behalf of Dachser. We have therefore today imposed an immediate takeover and loading stop for all shipments to Ukraine. This applies to all European transports of our Cargoplus service segment, which specializes in FTL and LTL transports to the CIS countries, among others, as well as to all transports from the European Logistics network that are handled in Ukraine by our partner ACE. Regular traffic from our platform Strykow (Poland) to Kiev will be discontinued. All trucks that are currently still on their way to Ukraine have to be returned in coordination with the customers. We are in close contact with our Ukrainian partner, who has also closed his warehouses.

In air freight, the airspace over Ukraine has been closed in a wide radius. Take-offs and landings are not possible here, so that congestion at the alternative airports is to be feared.

Our European Logistics and Air & Sea Logistics teams are closely monitoring developments in the situation and are in close contact with our customers. This also applies in particular to restrictions on the movement of goods that may arise in the coming days as a result of the sanctions announced against Russia.

Background - Dachser's activities in Ukraine and Russia.

Dachser does not have its own locations in Ukraine, but works there with its partner ACE Logistics. The Estonian company is also Dachser's partner for the Baltic states and joint venture partner in Finland. The Cargoplus service segment handles additional full truckload services.

In Russia, Dachser has been represented by its own national company since 2008 and provides services in the Road Logistics and Air & Sea Logistics business segments. Around 160 staff are employed at seven locations. In 2020, Dachser Russia handled around 17,000 consignments and generated revenue of EUR 21.6 million.

Read

01/19/2022

Two women, two careers in IT, one shared goal: to constantly improve processes for Business Integration customers.

Read

12/15/2021

Regular routes departing from Guarulhos and Viracopos airports to Colombia, Chile, Peru, Argentina and Mexico.

Read

Air Freight status update: PVG, HKG and FRA airports

You might also be interested in

Retaining supply chain fluidity amid Chinese New Year shutdowns

Statement by Dachser CEO Burkhard Eling on the military conflict in Ukraine

Programming the future

DACHSER Brazil offers reliable regular connections within South America