Flight capacity is slightly improving, but the trucking industry is facing challenges due to the Shanghai lockdown and concerns about a possible lockdown in Beijing. Flexport reported on April 26 that Shanghai remains under lockdown due to a high number of Covid cases. A round of testing will be conducted in the coming days to determine which areas can reopen safely, while Beijing is waiting to see if lockdown measures will be implemented.
Despite some improvement in flight capacity compared to the previous week, the main bottleneck remains the lack of trucking capacity, with airlines increasing rate levels as Golden Week approaches. The pandemic and Ukraine war effects are still impacting flight frequency in South China, although demand is on the rise.
Airports in Zhengzhou, Beijing, Guangzhou, and Shenzhen are experiencing congestion as they handle diverted cargo from Shanghai Airport. This has led to a shortage of airline pallets and limited capacity for storing cargo.
Norman Global Logistics forecasts that disruptions in logistics will likely persist until at least mid-May before returning to normal capacity levels. The Covid measures in Shanghai and Ningbo are causing delays and longer wait times for vessels, as well as increased road transport costs in affected areas.
Dimerco noted on April 26 that a Shenzhen-Hong Kong freighter service is addressing the lack of trucking capacity, while cross-border trucking capacity remains limited due to Covid-related manpower shortages at terminals.
In South Korea, capacity is tightening as airfreight shipments are being rerouted from North China due to ongoing lockdowns. In Europe, demand is steady with high rates and decreasing jet fuel prices, but freighter capacity remains reduced.
In the Americas, demand is high, with most airlines canceling flights to Shanghai Pudong Airport due to the Covid-related lockdown. Overall, transportation and logistics continue to face challenges as the impact of the pandemic and other global events persist.
