Balance of power is shifting to Chinese players

The balance of power on Chinato Europe routes is shifting towardsChinese carriers, the World Air CargoForum in Dubai heard. Wolfgang Meier, head of owncontrolled capacity for forwarderPanalpina, noted the large amountof new capacity, most of it from Chinesecarriers, that was being put ontoChina-Europe routes, and also a shiftamong shippers. "The decision-making about logisticssupply chains is […]


The balance of power on Chinato Europe routes is shifting towardsChinese carriers, the World Air CargoForum in Dubai heard.

Wolfgang Meier, head of owncontrolled capacity for forwarderPanalpina, noted the large amountof new capacity, most of it from Chinesecarriers, that was being put ontoChina-Europe routes, and also a shiftamong shippers.

"The decision-making about logisticssupply chains is shifting fromoutside China to inside," he said. "Forexample, Huawei and Lenovo now decide on their own supply chains."

On the capacity front, he listedthe large number of new services toEurope recently launched, includingGreat Wall, with six flights a weekrising to ten soon; Yangtze River Expresswith its four weekly flights toLuxembourg,

Shanghai Airlines, which has addeda second B747 freighter and wouldincrease frequencies out of Pudong,and the expanding services of JadeCargo International.

"From 2003 to 2005 freighter capacityon China-Europe routes has beendominated by the European legacycarriers, but now that has dramaticallychanged," Meier noted. "The footprint of Chinese carriers is increasing, and will further increase."

Meier was concerned about possibleover-capacity on China routes,however. "From the agent side I am happy with added capacity, and trafficwill grow 10-15 percent this year, so itis needed. But you begin to ask howmuch capacity is too much, or when alow rate becomes too low," he said.