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China's July air cargo traffic shows sign of recovery set for take-off

THE air cargo market in the Asia-Pacific region appears to be on the mend based on traffic numbers reported from airlines and airports for July, especially in the all-important Chinese market.

The three major airports in the Pearl River Delta - Hong Kong, Guangzhou and Shenzhen - all registered rising throughput in July.

Tonnage at Hong Kong International Airport climbed 4.7 per cent to 380,000 tonnes, and according to the airport authority, transshipment activity was a major driver, advancing 15 per cent.

The airport registered the strongest growth in the trade lanes to/from China, North America and South-east Asia. For the first seven months of the year, though, cargo growth was flat.

Guangzhou reported an eight per cent increase in throughput to 134,642 tonnes. Interestingly, freight was up 9.6 per cent, whereas mail dropped 7.6 per cent, the London's Loadstar reported.

Shenzhen showed the biggest jump of the trio, with cargo tonnage rising 11 per cent to 94,300 tonnes. Both in Shenzhen and Guangzhou cargo growth outstripped passenger momentum. Only in Hong Kong did cargo lag the rise in passenger numbers (up 5.8 per cent).

The airlines based in the region also saw their fortunes rise. China Southern Airlines posted a 7.3 per cent increase in tonnage to 126,670 tonnes.

Domestic volume was up 7.3 per cent, while international tonnage climbed 9.8 per cent. Air China handled 3.2 per cent more cargo in July than 12 months earlier, mostly driven by a 5.5 per cent boost in domestic tonnage. International volume was up 1.7 per cent.

Cathay Pacific and regional sister carrier Dragonair moved 158,022 tonnes in July, up 7.1 per cent from July 2015, and their combined load factor advanced 2.9 per cent to 64.7 per cent, as capacity increased a moderate 1.2 per cent.

'Helped by strong perishable exports from the Americas, the overall tonnage for July remained healthy, although revenues continue to be affected by dampened yields. We saw month-end pick-up and a stronger feed out of our home market and south-east Asia," said Cathay cargo chief Mark Sutch.

The improvement in Asian's major market is giving rise to hopes that the momentum will spread across the region.

One promising sign is that Singapore Airlines also recorded an improvement with the carrier reporting a 10.5 per cent rise in tonnage for July and with Its load factor improving by 2.3 percentage points to 54.8 per cent.