We have received preliminary indication that all freighter (CAO) aircraft service from China may soon be suspended under government instruction. Such action would certainly be detrimental to TPEB airfreight cargo as the vast majority of these shipments move on freighter aircraft. The full suspension of freighter flights would leave passenger flights as the only viable cargo option. Capacity for this option is already extremely limited and the suspension would force many cargo shippers to move air shipments via ocean… an already overwhelmed mode of transportation. One reason why cargo aircraft only service would be canceled before passenger services is due to the amount of the staff required to work those flights. Required staffing is at least double and the hours are longer. Regardless, with or without the suspension, the space crunch is worsening, and rates are going up.
At this time, we do not have further details regarding the length of the suspension or if this will be implemented. Although official notification from the Chinese government has yet to be announced, due to Covid outbreaks in many cargo terminals, some airlines have already taken the initiative to cancel many flights themselves. We will provide more information once further clarification is received.
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