E-commerce drives China's air cargo market

Such links are expected to boost China's trade with Belt and Road economies, which has been growing steadily. In the first quarter of this year, trade with BRI economies exceeded 4.8 trillion yuan, up 5.5 percent year-on-year and 0.5 percentage point higher than the overall growth rate of foreign trade, data from the General Administration of Customs showed.

In the first quarter, China Southern transported nearly 2,800 metric tons of cross-border e-commerce products, electronic products, industrial accessories and agricultural products from Beijing Daxing International Airport to countries and regions involved in the BRI.

The figure was a record high since the new airport in the capital started operations in 2019. This has further promoted economic and trade exchanges between China and BRI economies, the carrier said.

Since March, demand for air cargo to transport fresh flowers to Central and West Asia expanded. China Southern designed an optimal transportation path and provided cold chain services to transport flowers from Kunming, Yunnan province, to Beijing, and then to Central and West Asia.

The carrier has also transported products like cherries from Chile and Tajikistan, salmon from European countries and red wine from Georgia. It said it will continue to increase investments in the air cargo routes connecting China and BRI economies.

"We are confident that Beijing Daxing International Airport will develop into a world-class aviation hub and continue to contribute to the development of the BRI," said Wu Rongxin, deputy general manager of China Southern.

One by one, China's various provinces and regions are seeking to boost trade via cross-border e-commerce with enhanced efforts for better air cargo services. For instance, Central China's Henan province, which did not have an established intercontinental freight route network a decade ago, is now focusing on the rapid growth of Air Silk Road through frequent cargo flights between Zhengzhou and Luxembourg. This has made it possible to transport goods from the province to global consumers, and from other countries to Henan.

Luxembourg-based Cargolux Airlines International, the largest all-cargo carrier in Europe, debuted a new flight in late May that connects Luxembourg with Zhengzhou. In the return direction, it connects Chicago and New York.

The first such cargo flight mainly transported automobile parts, electronic products and daily necessities. The weekly flight used a Boeing B747 freighter. Cargolux operates 18 weekly cargo flights that connect Zhengzhou and other overseas cites.

China began supporting the building of a bidirectional Air Silk Road between Zhengzhou and Luxembourg in 2017. The service range of Air Silk Road now covers more than 200 cities in over 20 European countries and some 90 cities across China, said the National Development and Reform Commission.

Roland Reiland, Luxembourg's ambassador to China, said aviation is an important industry in Luxembourg, and the growing friendship between Luxembourg and Henan has origins in air transportation. He said he believes the two sides will continue to strengthen communications in different sectors.

In addition, Henan has continued to develop its aviation manufacturing sector. With an investment of 1 billion yuan, the first phase of an aviation industrial park in Zhengzhou can manufacture more than 50 sets of simulators annually.

Elsewhere, the International Air Transport Association recently released data on the performance of the global air cargo markets in April, showing strong annual growth in demand into the second quarter.

Total demand, measured in cargo ton-kilometers, rose by 11.1 percent compared to the April 2023 levels. This is the fifth consecutive month of double-digit year-on-year growth. Capacity, measured in available cargo ton-kilometers, increased by 7.1 percent year-on-year, the IATA said.

In particular, Asia-Pacific airlines saw 14 percent year-on-year demand growth for air cargo transportation in April, the strongest in all regions. Demand within the Asia market grew by 13.2 percent year-on-year, and demand on the Asia-Europe route grew by 17.7 percent year-on-year, the IATA said.

"While many economic uncertainties remain, it appears that the roots of air cargo's strong performance are deepening," said Willie Walsh, director-general of the IATA.

"In recent months, air cargo demand grew even when the Purchasing Managers Index was indicating the potential for contraction. With the PMI now indicating growth, the prospects for continued strong demand are even more robust."