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Shanghai Pudong Airport Situation Worsens Again

The situation at Shanghai Pudong International Airport seems to be deteriorating again. According to local forwarders, the air cargo space for exports from the airport showed some signs of improvement after the National Day holidays in October, but last week it dropped again to roughly 50-60% below the July level, and it is believed to have declined by 10-20% since mid-October. In addition to the ongoing quarantine control in the background, there are likely to be flight restrictions by the authorities. Amid strong shipping demand in the peak season, loading delays for export cargo are estimated to have increased from October, ranging from 2 to 6 days. Freight rates to North America have exceeded 100 yuan (about 1,800 yen or less) and appear to have risen again to the record level of last spring. The import space for arrivals at the airport, including those from Japan, remains the same, and the situation continues to be difficult. Consumption in North America is also not waning, and there is a growing belief in Shanghai that the situation will not return before the end of the year.


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