According to the announcement on March 17, Guangzhou Jiacheng International Logistics Co.Ltd(603535) , Cts International Logistics Corporation Limited(603128) will set up Guangzhou Jiacheng International Logistics Co.Ltd(603535) aviation together with zhidu investment to operate aviation logistics, warehousing, transportation, international freight forwarding and other businesses, and strive to become a leading international freight airline in the world. In the past year, many express giants, including SF, China Post, Yuantong express and JD logistics, have also invested heavily in the layout of cargo aviation.
Many industry insiders told reporters that at present, China has a large volume of parcel and express services. Relying solely on the belly compartment of passenger scheduled flights can not meet the demand. The overall market supply is in short supply, and the gap of cargo aviation is very huge. Compared with the leading foreign cargo airlines, China Airlines not only has a small cargo aircraft fleet, but also has a low cargo and mail turnover as a whole. Therefore, under the background of industrial structure transformation and upgrading, the explosive power of China’s freight logistics industry will exceed the market imagination.
another international cargo airline is about to be born
According to the announcement, Guangzhou Jiacheng International Logistics Co.Ltd(603535) signed an agreement with Cts International Logistics Corporation Limited(603128) and zhidu investment to jointly establish Guangdong Guangzhou Jiacheng International Logistics Co.Ltd(603535) Airlines Co., Ltd. The registered capital of the joint venture is 500 million yuan, of which Cts International Logistics Corporation Limited(603128) contributed 275 million yuan, accounting for 55% of the registered capital of the joint venture Guangzhou Jiacheng International Logistics Co.Ltd(603535) invested 200 million yuan, accounting for 40% of the registered capital of the joint venture. Zhidu invested 25 million yuan, accounting for 5% of the registered capital of the joint venture. All parties contributed in cash in RMB.
It is reported that Guangzhou Jiacheng International Logistics Co.Ltd(603535) Airlines is committed to providing full link international aviation logistics services for manufacturing or e-commerce platform enterprises. In the follow-up, it plans to work with tripartite shareholders to build the main hub center of ” Guangzhou Jiacheng International Logistics Co.Ltd(603535) aviation warehouse in Dawan district” in Guangzhou (covering an area of about 500000 square meters), and undertake the operation links of main airport cargo stations in Dawan District in advance, so as to realize the full link innovative business form of point-to-point international aviation logistics.
Zheshang Securities Co.Ltd(601878) analyst Kuang Peiqin believes that the air cargo market in South China is broad. In 2021, the import and export amount of Guangdong province accounted for 21.1% of the national import and export amount, and the cargo and mail throughput of Guangzhou Baiyun International Airport Company Limited(600004) and Shenzhen Airport Co.Ltd(000089) accounted for 20.3% of the National Airport cargo and mail throughput. There is a great demand in the hinterland. The cooperative layout of air cargo companies is expected to realize the triple strategic card position of region, license sector and link, and further build a high business moat.
cargo aviation has a bright future, and many giants have increased their weight
According to the relevant data of the prospective research institute, from January to October 2021, the whole industry completed a total cargo and mail transportation volume of 6.06 million tons, a year-on-year increase of 12.3%, achieved a civil aviation cargo and mail turnover of 22.88 billion ton kilometers, a year-on-year increase of 19.5%, and the civil transport airport achieved a cargo and mail throughput of 14.767 million tons, a year-on-year increase of 15.4%.
Zhao Xiaomin, an express logistics expert and CEO of guanshuo capital, told the Securities Daily: “at present, China’s parcel and express services rely heavily on the belly compartment business of passenger scheduled flights. The overall market supply is in short supply. The demand for all cargo aircraft is far greater than the actual holding in the current market, and the gap of China’s cargo aviation is still very huge.”
Huang Siqian, an industry researcher at the prospective research institute, believes that with the gradual implementation of relevant policies and the gradual improvement of China’s air cargo infrastructure, the air transport market will usher in a period of rapid growth. It is estimated that the growth rate of China’s civil aviation cargo and mail transportation volume will exceed the pre epidemic level. In 2027, China’s civil aviation cargo and mail transportation volume is expected to reach about 12 million tons.
China’s air cargo transportation is growing rapidly, including Shunfeng, China Post, Yuantong express, Jingdong Logistics and other giants are also “flattering” and investing heavily in the layout of cargo aviation.
According to the reporter’s preliminary statistics, Yuantong Express currently has 7 b737300f aircraft and 5 b757200f aircraft. China’s air fleet is expected to expand by about 5 planes by the end of the year. In addition, according to market news, the first aircraft of JD’s cargo airlines will also be officially announced.
Recently, a new B767300 wide body full cargo aircraft of SF Airlines arrived in Shenzhen and officially joined the fleet, which has also become the 69th self owned full cargo aircraft of SF fleet. Industry insiders predict that SF’s own fleet is expected to reach 70 to 80 in 2022, and the number of large all cargo aircraft with medium and long-range navigation capacity will continue to grow.
It is worth noting that the notice on strengthening the market access management of new airlines issued by the Civil Aviation Administration in 2016 strictly controlled the number of new airlines. At present, there are only 11 cargo aviation licenses in China, including China’s four major airlines, and the resources are very scarce. Kuang Peiqin believes that the government’s high regulation of the aviation logistics industry has led to extremely high policy barriers in the industry. In addition, the synergy between cargo volume demand and marketing network layout and aviation logistics companies is also very important, and the scale barrier is also very high.
Zhao Xiaomin believes that from a medium and long-term perspective, the prospect of the aviation logistics industry is very good, and the explosive force will exceed the imagination of the market. On the one hand, China’s aviation logistics companies should strengthen the introduction of aircraft and the linkage with local economic hubs; On the other hand, China’s existing logistics companies should be related to air freight as much as possible, because in the future, the improvement of logistics efficiency and the decline of cost are the key issues that need to be considered at both the production end and the consumption end.
“At this stage, the epidemic is still spreading all over the world. As the most timely means of emergency material transportation and supply chain maintenance, aviation logistics is still in the seller’s market pattern. The supply of air transport capacity outside China is in short supply and the high unit price of air cargo tonnage will continue.” Qi Qi, a civil aviation expert and associate professor of Guangzhou Civil Aviation Vocational and technical college, believes that in the medium and long term, if air cargo only stays in the revenue of vehicles and is limited to the aviation logistics ecology, rather than deducting to the new model of international supply chain management, it is also likely to return to “ordinary” because the epidemic subsides.
