Air Exportation From China

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  • 1. Air Exportation from CHINA Presented by Joseph So COHESION Air Freight (HK) Ltd.
  • 2.
    • China U.S. air freight has taken off, but from a smaller base
    China – U.S. Air Freight
  • 3. Ranking of Freight Vol. in China Airports Source: CAAC
    • Freight Vol. in Hong Kong Airports
    2005 – 3437050 2004 - 3119008 10.1% (In tons) 18.5 506988.3 600603.9 3 Guangzhou 17.0 668690.0 782066.0 2 Beijing 13.1 1642176.0 1857119.8 1 Shanghai – Pudong % Change 2004 2005 Rank Airport
  • 4.
    • China and Hong Kong account for 29% of the air freight in U.S. Asia market
    China – U.S. Air Freight Source: BACK Aviation,
  • 5. China – U.S. Air Freight
    • Air freight trade includes products and equipment related to high-tech and high-fashion
    Source: BACK Aviation, FY 2005 air freight commodity analysis
  • 6. Footwear Manufacturing in China Over 80% of the footwear going into U.S.A. is from China Below areas are the key regions for footwear (Non-rubber/Rubber/Fabric) manufacturing: Dongguan, Guangdong Putian, Fujian Wenzhou, Zhejiang
  • 7. The top airlines serving China-US include:
  • 8. ñ
    • Shanghai
    Air freight service between the US & China is consolidated in a few key airports
    • Beijing
    ñ ñ
    • Guangzhou
    ñ
    • Hong Kong
  • 9. Air freight service between the US & China is consolidated in a few key airports
    • Beijing: Mainly handle shipments from
    Yellow Sea Bo Hai
    • Shandong,
    • Shanxi, Inner Mongolia
    • Including
    • Tianjin,
    • Liaoning,
    • Hebei,
  • 10. Air freight service between the US & China is consolidated in a few key airports Shanghai : Mainly handle shipments from Yangtze River Delta
    • Including
    • Wenzhou,
    • Nanjing
    • Hangzhou,
    • Ningbo,
  • 11. Guangzhou: Mainly handle shipments from Air freight service between the US & China is consolidated in a few key airports Pan-Pearl River Delta
      • Jiangxi,
      • Panyu,
      • Shunde,
      • Zhongshan,
      • Shenzhen,
      • Hong Kong,
      • Foshan,
      • Fujian,
      • Zhaoqing,
      • Zhuhai
      • Dongguan,
      • Including:
      • Guangzhou,
  • 12. Hong Kong: Mainly handle shipments from Air freight service between the US & China is consolidated in a few key airports
    • Including
    • Guangzhou,
    Guangdong province
    • Zhuhai,
    • Zhongshan,
    • Shenzhen,
    • Dongguan
  • 13. Air Freight Business Outlook
    • China will further open up its air cargo market
    • Air cargo volume will maintain an average growth rate of over 10% (the growth rate of the world is 6.2%)
    • New carriers are coming into China Market
  • 14. Air Freight Business Outlook
    • More freighters will come into China market.
    • * UPS announced they have placed order for an A380 freighter expect delivery on 09
    • * UPS will add eight Boeing 747-400 freighters to its fleet starting June 07
    • * FedEx announced a new Asia Pacific hub will be built at the Guangzhou Baiyun International Airport this summer.
    • Since majority of the manufacturers are located in China, the shipments will be shipped directly
  • 15. Air Freight Business Outlook
    • The role of the airport in China will become more significant
    • E.g. the Baiyun International Airport in Guangzhou,
    • the Gaoqi International Airport in Xiamen
    • Goods manufactured in Southern China trend to ship via Guangzhou instead of Hong Kong
    • The future role of the Hong Kong International Airport will become less important
  • 16. Export Procedures
    • Cargo Cut off:
      • Cargo must be delivered before 10:00a.m. (for same day evening flight)
      • Cargo must be delivered one day prior carrier departure
    • Document Cut off:
    • - On or before cargo arrival at the airport
    • Custom clearance:
    • - In normal practice it takes one day
    • - Additional half to one day will be needed if there is any random customs inspection
  • 17. Export Procedures
    • Provide full set of export customs clearance document
    • - Packing list
    • - Commercial invoice
    • - Export application form
    • - Authority letter for export clearance
    • - Application form of tax refund after exportation
    • - Sales contract
    • - Fumigation certificate for solid wood package
    • - Certificate of commodity inspection (If it is required in the rules of China customs)
  • 18. Common air transportation problems in China
    • Lack of delivery reliability
    • Non-procedural practices
    • Excessive customs clearance times
    • Lack of intermodal service
    • Lack of shipment tracing service
  • 19. THE END THANKS!