[photopress:fedex_1_2_3.jpg,full,alignright]Air freight between the United States and China is forecast to grow at an average of 9.6% a year over the next 20 years (while traffic to Europe is predicted to grow almost as quickly at 9.3% over the same period).
Charles Kaufman, vice president and head of air freight, Asia-Pacific, for DHL’s Danzas Air & Ocean division, said, ‘The output from the two major airports of Shanghai and Beijing into the United States and Europe is tremendous. Airlines are increasing their flights out of China rapidly.’
The General Administration of Civil Aviation of China recently granted foreign carriers the right to pick up cargo on the Chinese mainland en route to other destinations.
Previously, an aircraft picking up freight in Shanghai, for example, was required to fly directly to its end destination without making stops in between. This new ‘freedom’ — the same sort of ‘freedoms’ are applied to passenger traffic — means that there is room for futher development in the aircargo market between China and the United States.
UPS, FedEx Express, DHL Express and even the U.S. Postal Service are making big investments in hopes of capturing market share in the China region.
John Wheeler, a representative of UPS International, said, ‘We see nothing but growth coming from China and going into China, too. The biggest issue right now is that there is a lack of capacity in and out of China and everybody is feeling the pinch. The result is a series of investments:
UPS announced in August that it will add eight new Boeing 747-400 freighters to its fleet, starting in June of this year.
FedEx announced this summer it is building a new Asia Pacific hub at the Guangzhou Baiyun International Airport in southern China. The facility, which represents a US$150 million capital investment, will allow FedEx to double its capacity in China by sorting up to 24,000 packages per hour.
DHL is investing US$273 million in a five-year China expansion plan that calls for the company to develop and launch China Domestic, a door-to-door express delivery service in China; establish Express Logistics Centers in Shanghai, Guangzhou and Beijing; and establish 16 spare-parts centers across China.
DHL will spend US$12 million to double DHL Danzas Air & Ocean’s presence from 20 cities to 37 by 2007, and will invest US$3 million in two DHL Danzas Air & Ocean Logistics Centers in the Shanghai/Pudong region.
Source: DC Velocity
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