DELTA Air Lines' cargo business benefitted during the first quarter from supply chain disruptions that pushed shipments to the tight air market, causing delta to eye a cargo surge after the Shanghai lockdown eased, reports New York's FreightWaves.
The latest logistics gridlock in Shanghai could fuel more growth.
Reduced industry capacity drove a significant increase in cargo yield, generating US$289 million in cargo revenue during the period ending March 31, up 51 per cent from the 2019 benchmark.
Imports and exports in central Chinese trading hubs are piling up because Chinese authorities have sealed off Shanghai to mitigate the omicron variant.
The measures are hampering activity at the world's largest container port and at Shanghai's main cargo airport.
Although Shanghai Pudong airport is now open, not many trucks can reach the cargo terminals to deliver or retrieve shipments because of street closures.
'China has been a very strong market for us in the cargo area. We're literally not flying to China right now until Shanghai reopens, so that's going to weigh a little bit on cargo revenues as we move forward,' said Delta president Glen Hauenstein.
'As that does reopen, then you can see that pent-up demand for goods that need to get shipped out of China and potentially even [give us] another leg up,' he said. 'We could see even stronger demand coming out of that.'
SeaNews Turkey
The latest logistics gridlock in Shanghai could fuel more growth.
Reduced industry capacity drove a significant increase in cargo yield, generating US$289 million in cargo revenue during the period ending March 31, up 51 per cent from the 2019 benchmark.
Imports and exports in central Chinese trading hubs are piling up because Chinese authorities have sealed off Shanghai to mitigate the omicron variant.
The measures are hampering activity at the world's largest container port and at Shanghai's main cargo airport.
Although Shanghai Pudong airport is now open, not many trucks can reach the cargo terminals to deliver or retrieve shipments because of street closures.
'China has been a very strong market for us in the cargo area. We're literally not flying to China right now until Shanghai reopens, so that's going to weigh a little bit on cargo revenues as we move forward,' said Delta president Glen Hauenstein.
'As that does reopen, then you can see that pent-up demand for goods that need to get shipped out of China and potentially even [give us] another leg up,' he said. 'We could see even stronger demand coming out of that.'
SeaNews Turkey