Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today, I would like to talk about, “Shanghai lockdown lifted. Signs of recovery in aviation demand.”
Daily Logistics Radio by IINO san in 2nd June 2022
Shanghai Lockdown Lifted
Air cargo flights have resumed operations following the lifting of the lockdown in Shanghai, China on June 1.
According to logistics officials, the number of flights to and from Shanghai Pudong Airport has recovered to 80% of the pre-lockdown level.
It appears that there are signs of recovery in demand for air freight from Shanghai as corporate activities get back into full swing.
Aviation Demand, Supply Outstrips
Yesterday, Shanghai announced the lifting of restrictions on automobile traffic, including private cars, and the reopening of public transportation.
Under these circumstances, airlines are increasing the supply of space for flights to and from Shanghai Pudong Airport.
Although space supply is currently exceeding demand, a major forwarder said, “We expect demand to start returning in the next week when business activities resume.”
Demand for air cargo between Japan and China was originally sluggish due to flight cancellations caused by labor shortages and the prolonged lockdown.
Nevertheless, some warehouses continued to operate during the lockdown, and employees stayed overnight at the airports to respond.
Therefore, there was virtually no cargo held up at both Pudong and Narita airports.
Airports in Full-Scale Operation
Preparations are underway for full-scale operations at the airports.
Logistics companies have been gradually increasing the number of warehouse staff since June 1st.
According to officials, there are also reports that the local customs staff will return to the same size as before the lockdown.
However, it is unclear at this point how much staff can be secured for the airport shed, and some believe that it will take some time before it is fully operational.
If there is not enough staff in the shed, it will take time to Break Bulk. Unpacking of cargo unloaded from airplanes will not proceed, and congestion will occur.
With Shanghai back in operation, infrastructure is being prepared around the airport.
Concerns about Land Transportation
On the other hand, logistics to and from outside the city continues to be difficult for land transportation in Shanghai.
According to several forwarders, the number of drivers for logistics within Shanghai is expected to “increase in the future” due to the lifting of lockdown.
However, for transportation to and from areas outside the city, the situation “will continue to be difficult,” they continued.
For deliveries to and from areas outside the city, especially those that cross provincial boundaries, PCR inspections and segregation are required, making it difficult to secure drivers.
It will still take some time for normal operation of land transportation.
I have brought you news on aviation, but I am personally concerned about what will happen on the sea.
I will keep you updated.
That’s all for today. Thank you.