air cargo business in china
Post on 14-Sep-2014
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Air Exportation from CHINA
Presented by Joseph So COHESION Air Freight (HK) Ltd.
China U.S. air freight has taken off, but from a smaller base
China – U.S. Air Freight
Ranking of Freight Vol. in China Airports
Airport Rank(In tons)
% Change2005 2004
Shanghai – Pudong 1 1857119.8 1642176.0 13.1
Beijing 2 782066.0 668690.0 17.0
Guangzhou 3 600603.9 506988.3 18.5
Source: CAAC
Freight Vol. in Hong Kong Airports
2005 – 3437050
2004 - 311900810.1%
China and Hong Kong account for 29% of the air freight in U.S. Asia market
China – U.S. Air Freight
2005
Hong Kong5%
China24%
Rest of Asia71%
Source: BACK Aviation,
China – U.S. Air Freight Air freight trade includes products and equipment
related to high-tech and high-fashion
INTERMEDIATE GOODS13%
APPAREL6%
WOMENS APPAREL8%
MENS APPAREL2%
HOME FURNISHINGS2%CONSUMER
PRODUCTS2%
FASHIONACCESSORIES
6%CAPITAL EQUIPMENT8%
TELECOM20%
ELECTRONICS12%
ALLOTHER21%
Source: BACK Aviation, FY 2005 air freight commodity analysis
Footwear Manufacturing in China
Over 80% of the footwear going into U.S.A. is from China
Below areas are the key regions for footwear (Non-rubber/Rubber/Fabric) manufacturing:
Dongguan, Guangdong
Putian, Fujian
Wenzhou, Zhejiang
The top airlines serving China-US include:
Shanghai
Air freight service between the US & China is consolidated in a few key airports
Beijing
Guangzhou
Hong Kong
Air freight service between the US & China is consolidated in a few key airports
Beijing: Mainly handle shipments from Yellow Sea Bo Hai
Including
Tianjin,
Liaoning, Hebei, Shandong, Shanxi, Inner Mongolia
Shanghai: Mainly handle shipments from
Air freight service between the US & China is consolidated in a few key airports
Yangtze River DeltaIncluding Wenzhou, Nanjing
Hangzhou,
Ningbo,
Guangzhou: Mainly handle shipments from
Air freight service between the US & China is consolidated in a few key airports
Pan-Pearl River Delta
Jiangxi,
Dongguan,Panyu,
Shunde, Zhongshan,
Shenzhen,Hong Kong,
Including: Guangzhou,
Foshan, Fujian, Zhaoqing,
Zhuhai
Hong Kong: Mainly handle shipments from
Air freight service between the US & China is consolidated in a few key airports
Including
Guangzhou,
Guangdong province
Dongguan
Zhuhai, Zhongshan,
Shenzhen,
Air Freight Business Outlook
China will further open up its air cargo market
Air cargo volume will maintain an average growth rate of over 10% (the growth rate of the world is 6.2%)
New carriers are coming into China Market
Air Freight Business Outlook More freighters will come into China market.
* UPS announced they have placed order for an A380 freighter expect delivery on 09
* UPS will add eight Boeing 747-400 freighters to its fleet starting June 07
* FedEx announced a new Asia Pacific hub will be built at the Guangzhou Baiyun International Airport this summer.
Since majority of the manufacturers are located in China, the shipments will be shipped directly
Air Freight Business Outlook The role of the airport in China will become more sign
ificant
E.g. the Baiyun International Airport in Guangzhou,
the Gaoqi International Airport in Xiamen
Goods manufactured in Southern China trend to ship via Guangzhou instead of Hong Kong
The future role of the Hong Kong International Airport will become less important
Export Procedures Cargo Cut off:
- Cargo must be delivered before 10:00a.m. (for same day evening flight)
- Cargo must be delivered one day prior carrier departure
Document Cut off:
- On or before cargo arrival at the airport
Custom clearance:- In normal practice it takes one day- Additional half to one day will be needed if there is any
random customs inspection
Export Procedures Provide full set of export customs clearance
document- Packing list- Commercial invoice- Export application form- Authority letter for export clearance- Application form of tax refund after exportation- Sales contract- Fumigation certificate for solid wood package- Certificate of commodity inspection
(If it is required in the rules of China customs)
Common air transportation problems in China
Lack of delivery reliability
Non-procedural practices
Excessive customs clearance times
Lack of intermodal service
Lack of shipment tracing service
THE END
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