In 2022, the global aviation logistics market was particularly uneasy, and the giant whales that you would never imagine had entered the air-carrying swan group.
In 2022, not only China's first comprehensive logistics central enterprise, China Logistics Group, entered air cargo, China's largest direct e-commerce logistics company JD Logistics , a subsidiary of JD.com Logistics , was approved by
htmlOn September 26, the world's largest liner company, Switzerland Mediterranean Shipping (MSC), announced that it will fully enter the air cargo market. So far, the world's top three shipping logistics companies, Switzerland Mediterranean Shipping, Denmark Maersk, and France Dafei Shipping, have all joined the air cargo market.
(MSC air cargo Source: The Produce News)
MSC said that to meet customer needs, a new air cargo solution, MSC Air Cargo, has been developed and used as a supplementary service to container transportation solutions.
How to understand shipping logistics giants are entering the aviation logistics market? Interpretation of this issue of Zhanglian·First Logistics Network.
1. From login to launch: Mediterranean shipping and Maersk's entry into aviation predicts what
(I) The digital trade era calls for efficient transportation and logistics
Now, the digital trade era has arrived in full swing, and cross-border transactions and modern industries under the digital economy need more efficient transportation and logistics. The slow container liner really cannot accommodate the international logistics giants' desire for timeliness.
(1) Shipping giants are all doing aviation. MSC Mediterranean Shipping Company entered the air cargo business under the MSC Air Cargo brand. Early next year, they will start their layout with four Boeing 777-200Fs operated by Atlas Airlines.
Mediterranean Shipping Company is the third shipping company to enter the air transport industry. Competitor France's Dafei Maritime Transport Group (CMA-CGM) has been in operation for a while, and Maersk Airways was established earlier.
Today, Maersk announced the formal establishment of the air cargo company Maersk Air Cargo. In June this year, Maersk completed the acquisition of air freight forwarding Senator International. Today, the three major container ship companies have entered the air cargo field.
(2) The digital economy changes logistics demand. "We are increasingly finding that customers do need an end-to-end logistics solution. This one-stop service not only eliminates the complexity of logistics, but also makes it an optimized and efficient solution," said Michel Pozas Lucic, head of global air cargo at Maersk. "We are increasingly finding that customers do indeed need an end-to-end logistics solution. This one-stop service can not only eliminate the complexity of logistics, but also make it an optimized and efficient solution."
Although only about 3% of global trade volume is completed by air transportation, it is estimated that 35% of global trade value needs to rely on the air cargo service chain. Comprehensive analysis of the data of InsightIQ, IATA, ICAO and Boeing of aviation research institutions IBA. The following factors determine that air transportation is becoming more and more important.
The first thing that is to bear is the changes in trade and logistics brought about by e-commerce and online shopping. In the post-epidemic era, e-commerce has accounted for 15.5% of the retail market, and the proportion has steadily increased.
In 2020, the total international e-commerce sales were US$4.8 trillion. In 2021, the total sales of global e-commerce will be US$5 trillion. It is expected to exceed $6 trillion in 2022. 80% of the total cross-border transportation is transported by air.
online retail giants have also built their own aviation logistics teams, such as Amazon Prime Air and Alibaba logistics. In 2021, Amazon logistics has surpassed FedEx to become the third largest express delivery in the United States. Amazon Airlines has also become one of the world's largest air cargo companies. In 2022, JD.com also announced that JD.com was approved for establishment. Another driver of the growth of the air cargo market is time-sensitive high-value cargo such as chips, medical equipment, perishable goods and medicines. As the global chip shortage continues in 2020, some major passenger airlines have begun operating pure cargo airlines.Such as Virgin, British Airways and Finnair .
(II) The global supply chain requires comprehensive transportation, and multimodal transport requires a supplementary airline
Due to geography, geopolitics, etc., imports and exports of many countries are restricted. The main export products of air transport in developing countries are fresh cut flowers, electronic parts and fresh fruits and vegetables. Air transport imports usually include high-value consumer goods.
air freight is mostly used as part of the diversification strategy - launching products with shorter shelf life or providing reliable delivery in small batches in new markets. Once the market is established and the number increases, manufacturers can rebuild their supply chains by using less costly shipping methods.
These strategies are particularly important for landlocked countries where landlocked transport is unreliable or whose customs clearance procedures are long and uncertain at their borders or foreign portals. Finally, when cold chains are required for exports, air freight is the only means to ensure continuity. The optimization and cost reduction of global logistics chains must be considered to speed up and reduce costs. Therefore, air transport, sea transport, railway, and road transport intermodal services have become a demand.
In the short term, rising fuel prices will lead to slowing growth in air cargo volume and may even decline. In the long run, transportation volumes should continue to grow, but air freight will increasingly be integrated into the multimodal supply chain, thus achieving a better balance between cost and time.
(III) High-value-added industries, chips and smartphones, etc., require air freight
. The demand for air freight is limited by cost. Air freight prices are usually 4-5 times that of road freight and 12-16 times that of sea freight. The rates are typically between $1.50 and $4.50 per kg, while air freight is usually worth more than $4.00 per kg.
air-cargo goods have high unit value or are very sensitive to time. The chip industry is a typical example of air transportation, which has also driven the rise in air transportation.
(Electronic products are transported by air Source: AN aviation)
In 2021, my country exported electromechanical products of 12.83 trillion yuan, an increase of 20.4%, accounting for 59% of the total export value. Among them, automatic data processing equipment and its components, mobile phones and cars increased by 12.9%, 9.3%, and 104.6% respectively. During the same period, imported electromechanical products were 7.37 trillion yuan, an increase of 12.2%, accounting for 42.4% of the total import value, of which integrated circuit imports increased by 15.4%. In the past year, China exported electromechanical products at 12.83 trillion yuan, an increase of 20.4%, accounting for 59% of the total export value.
Export volume in key industries of electromechanical industries generally increased significantly. Data shows that China's automobile (including chassis) exports increased by 119.2% year-on-year to US$33.46 billion in 2021, with the most significant increase. The export of traditional key products such as computers, communication products, household appliances, and lighting equipment has continued to grow steadily due to the increasing global demand.
In terms of imports, China imported electromechanical products in 2021 to 7.37 trillion yuan, an increase of 12.2%, accounting for 42.4% of the total import value. Among them, integrated circuits are the single electromechanical product with the largest imports in China, and it is also the main driving force for China's electromechanical imports. Data shows that China's integrated circuit imports increased by 23.6% year-on-year to 32.55 billion US dollars in 2021.
There are two main reasons for China's high growth in integrated circuit import trade.
First, the digitalization and intelligence of various industries drive upstream semiconductor demand; second, the supply chain instability caused by the repeated overseas COVID-19 epidemic and Sino-US trade frictions have exacerbated the global semiconductor production capacity shortage and supply shortage. In order to avoid production interruptions, Chinese companies that play an important role in supplying global electromechanical products have increased the inventory of key components such as integrated circuits, and have also driven the development of air freight.
2. Mediterranean Logistics and Maersk’s big money in recent years
In the past, almost all shipping companies cooperated with freight forwarding companies, but no shipping company is big enough to cover all services, because these are two completely different aspects.
As early as 2016, Maersk Group clearly stated that it will become a global comprehensive container shipping logistics company, providing customers with all-round, end-to-end logistics solutions to help them connect and simplify the supply chain.
This grand goal must require an efficient organizational structure. Mediterranean Shipping (MSC) has always hoped to build itself into a comprehensive logistics company covering land transportation and air transportation.
(Maersk and Mediterranean Shipping compete to move towards comprehensive logistics)
Ensure the stability of the international supply chain and the controllable risks, and equip the industrial chain and supply chain in the region to ensure the reliability of production and capacity effectiveness in extreme cases. Due to the current situation of high uncertainty caused by port congestion, transportation disruptions and high demand models, the global container demand growth in 2022 is expected to reach 2-4%, while the marine transportation business will remain at the same level of development.
Why are a series of shipping tycoons such as Maersk and Mediterranean Shipping becoming interested in air transportation?
Specifically, firstly, due to the surging epidemic, the supply chain congestion problem is serious; secondly, due to the prosperity of online shopping around the world, air freight demand has increased with the significant increase in cross-border e-commerce shipments, and customers also pay more attention to the schedule of goods transport. Therefore, more customers need alternative freight methods.
Then it is the strategic transformation of the shipping company. Since the outbreak of the epidemic, Mediterranean Shipping has been committed to developing full-process logistics, and providing end-to-end solutions has been a consensus among a number of shipping giants. The International Monetary Fund said that consumer goods spending this year has exceeded the expected level, but it has remained flat overall, which is also a risk in container demand. Inventory replenishment in 2022 may further increase container demand.
In order to cope with the strong pressure faced by the supply chain and improve the quality of shipping services, Mediterranean Shipping and Maersk have made a series of investments to integrate vertically, continuously strengthen the construction of shipping, ports and air transportation logistics networks, actively explore end-to-end businesses, extend the industrial chain, and pursue the substantive control of physical assets and data resources in each link.
At present, after experiencing a period of high freight rates in the epidemic, Mediterranean Shipping, which has a large amount of funds, continues to invest and control logistics infrastructure, including ships, ports, freight forwarding, warehouse networks, air cargo business, etc., and based on this, we are moving towards the new strategic goal of providing comprehensive logistics solutions for sea, land and air freight.
3. Should the three logistics "national teams" change their lines?
Although China COSCO and China Foreign Transportation are entering aviation logistics in different forms, compared with the international team comprehensive logistics group-China Logistics Group, it is a bit difficult to keep up.
(I) COSCO Shipping, COSCO Shipping, COSCO Shipping, COSCO Shipping, has been a joint venture with China Eastern Airlines
(the fourth largest capacity in the world)
China Ocean Shipping Group Co., Ltd. , is also the first in the top 50 logistics companies in China. As of September 29, 2022, China Ocean Shipping Group operates a fleet of 2872327 TEU, ranking fourth in the world. Among them, the dry bulk fleet has a capacity of 44.75 million dwt/442 ships, the oil and gas fleet has a capacity of 29.29 million dwt/227 ships, and the grocery special fleet has a capacity of 5.56 million dwt/167 ships, both ranking first in the world.
COSCO Shipping Group has invested 57 terminals and 50 container terminals worldwide. The annual throughput capacity of container terminals is 132 million TEU, ranking first in the world. The container leasing business has a scale of 3.91 million TEU, ranking third in the world.
COSCOWAI is based on shipping, ports, logistics, etc. and empowering and value-added industries, and is committed to building a "3+4" industrial ecosystem. From the perspective of the 3+4 industrial cluster, COSCOWAI attempts to build itself into a comprehensive logistics enterprise, among which COSCOWAI Air Transportation is an effort to realize aviation logistics.
COSCO International Air Freight Forwarding Co., Ltd. (hereinafter referred to as COSCO Air Freight) was established on August 18, 1995. It is an international freight forwarding and a Class 1 air freight forwarding company approved by the Ministry of Economic and Trade and the State Administration of Civil Aviation. It is a wholly-owned subsidiary of COSCO. In June 2017, COSCO Air Transport was renamed COSCO Air Freight Forwarding Co., Ltd. (hereinafter referred to as COSCO Air Transport).
As early as 2004, Shanghai Oriental Yuanhang Logistics Co., Ltd. was jointly invested and established by China Eastern Airlines Co., Ltd., China Ocean Shipping Group Co., Ltd. and China Cargo Airlines Co., Ltd. . This is the first professional logistics company in mainland China that relies on airlines.
On September 8, 2016, COSCO Shipping Group and China Eastern Airlines Group launched strategic cooperation, and the two parties opened up the sea-air transport market. On December 6, 2021, China Logistics Group Co., Ltd. was established, with China Ocean Shipping Group Co., Ltd. strategically investing, accounting for 7.3% of the shares. .
Shanghai Oriental Yuanhang Logistics Co., Ltd., jointly established by the two major groups of China Eastern Airlines and China COSCO, is officially listed.
(II) China Foreign Transportation , China's largest air freight forwarding company
, established in October 1999, China Foreign Transportation Air Transportation Development Co., Ltd. is the first listed company in the domestic air freight forwarding industry. In 2021, the global air freight forwarder ranked 12th, with a transportation volume of 502,000 tons.
(China Foreign Transport Global Air Freight Forwarding Ranking 12)
China Foreign Transport is a logistics company under China Merchants Group and is also the fourth among the top 50 logistics companies in China. In 1986, China Foreign Transport established a joint venture with DHL Germany, and was in a leading position in the Chinese international express delivery market.
(Sino-Foreign Transport DHL Air Transport Source: DHL)
(III) China Logistics Group: This year, the first time entering the air cargo
The main basis of international express delivery is air transportation. In the first half of this year, China Logistics Group was exposed to establishing an international express delivery company. pave the way for its entry into aviation.
Liao Jiasheng, general manager of China Logistics Group, previously said in an interview with the media that the group hopes to obtain air cargo licenses and other franchise qualifications.
The third largest shareholder of China Logistics Group is China Eastern Airlines Group , which is a subsidiary of China Eastern Airlines Logistics , which is also one of the largest air cargo companies in China.
(I) Establish an air cargo company
On March 16, 2022, China Logistics, a subsidiary of China Logistics Group, signed a cooperation agreement with Jiacheng International and Zhidu Investment, jointly established a joint venture airline - Jiacheng International Airlines. The company has built the International Aviation hub center in Guangzhou, and has taken air logistics warehousing, transportation, international freight forwarding and other businesses as its core business, greatly enhancing the stability of the aviation logistics supply chain.
This has become the core measure for China Logistics Group to lay out the uppermost reaches of the air transportation industry and improve its own transportation capacity layout.
joint venture company is Huadu District, Guangzhou, and its business scope includes general business projects such as aviation international cargo transportation agents, ordinary cargo warehousing services, and licensed business projects such as public air transportation and bonded warehouse operations.
Because Guangdong's freight market is vast, it chose to establish a joint venture in Guangdong.In 2021, Guangdong Province's import and export volume accounted for 21.1% of the country. At the same time, Baiyun Airport and Shenzhen Bao'an Airport 2021 cargo and mail throughput ranked among the top three in the country, accounting for 20.3% of the total cargo and mail throughput of the airport in the country.
According to the intention agreement signed by the two parties in March, the newly established joint venture will build the main hub center of the "Greater Bay Area Jiacheng International Air Cargo Store" with an area of about 500,000 square meters in Guangzhou. Its function is positioned as a cross-border cargo store building in Guangdong and Hong Kong, and will be placed in the main hub center for the operation and operation of the Greater Bay Area airport.
This time, the establishment of an air cargo company will help Huamao Logistics obtain scarce air cargo license resources, and will build China Logistics Group's long-term competitive advantage in the air cargo field.
(II) Hold hands with China Post China Eastern Airlines
① China Post Express: Enter the ,000 National Postal Network system. On February 23, Huamao Logistics and China Post Express Logistics signed the "Strategic Cooperation Framework Agreement", with the contract term of two years.
Huamao Logistics is a international freight forwarding central enterprise giant, and China Post Express is the second largest domestic all-cargo aircraft owner. The two sides will complement each other's advantages in the field of air freight resources, jointly give full play to their professional marketing capabilities, and reduce international transportation costs.
As of July 2022, China Post Airlines currently has 34 full-cargo aircraft, second only to SF Airlines 's 72. There are 14 international routes, covering 18 countries and regions.
is not only a full-cargo aircraft transportation resource, but Huamao Logistics can also enter the Universal Postal Connection system, relying on the package channel resources of China Post to further extend the service chain.
②China Eastern Airlines Logistics: Deepen the global network layout. On March 15, Huamao Logistics and China Eastern Airlines Logistics signed a "Strategic Cooperation Framework Agreement", combining the resource integration capabilities of Huamao Logistics and the freight capabilities of China Eastern Airlines Logistics, jointly providing global logistics solutions to large manufacturing customers.
China Airlines Logistics is the first sample of civil aviation mixed reform. It has operating bases in both Hongqiao and Pudong Airports (the first airport cargo and mail throughput in 2021), and the route network reaches 170 countries and regions around the world. As of the end of 2021, the number of registered full cargo aircraft in China Eastern Airlines Logistics has reached 10, and the fleet size of all cargo aircraft is expected to reach 15-20 by the end of the 14th Five-Year Plan.
This is a major move by China Logistics Group in the cross-border logistics sector after its establishment. With the help of China Eastern Airlines Logistics' freight stations and capacity resources, China Logistics Group's global network layout will be deepened.
(Author: Guan Yi)
