This year has been about the normalisation of our operations in North Asia.
Our freighter schedule is back to where it was before the pandemic, and we are continuing to resume passenger flights. In Seoul, that means we are back up to 24 Cathay Pacific passenger flights per week to Incheon. In Japan, we currently have 44 passenger flights per week split between the Tokyo airports with the potential for more during the summer peak, and 24 flights to Kansai International. Fukuoka frequencies are back to normal, flights have been restored to Nagoya and built up from practically zero at Sapporo, from where we are currently exporting Hokkaido scallops, which is all good news.
While summer may be the peak season for passengers, it is the quieter season for air cargo. We are lucky that the appetite for Japanese fruit and fresh produce in Hong Kong and other parts of Asia remains strong, but we recognise that demand for Japan’s semiconductor and machine parts is quieter. These are components that are needed by the auto industry and high-tech manufacturers. Now, with inventories relatively high after manufacturers acted to ensure they would not again experience the shortages they did during the pandemic, it will take some time for these high levels to be digested. However, we are confident they will be and the outlook for exports of these products from Japan remains positive, especially after recent announcements on increased manufacturing capability being built in the country.
Of course, it’s not just us in Asia; demand is soft in many global trade lanes. It is usual at this time of year to start looking ahead for signs of a peak, but the market is much harder to predict this time around – and I certainly don’t possess a crystal ball! However, with new data tools available we will continue to analyse the market for signs that inventories are starting to be replenished, and whatever happens, we will be ready for our customers.
Despite these challenges, there are still opportunities. Being able to sell main-deck freighter space in our market gives us advantages over airlines that only operate passenger aircraft. That means we are available for ad hoc shipments, and this year we have won more business carrying aircraft engines while demand continues to grow for semiconductor-printing ‘stepper’ machines. You can read more about my region’s market, as well as my thoughts on how the industry has changed here.
While I am celebrating 35 years at Cathay Pacific this year, our airline celebrates its 40th anniversary of flying into North America this month. You can meet my Vancouver colleague Alan Fung, who worked on that inaugural flightin Hong Kong and read how he continues to ensure safety and quality in our cargo operations to this day as our Cargo Services Lead Agent. The success of the historic transpacific route put us on the path to building our global network and successful cargo business. Much has changed since, but our commitment to high quality service remains.
STOP PRESS: We are delighted to announce that Cathay Cargo was named the Sustainable Cargo Airline of the Year – Asia at the Freightweek Sustainability Awards 2023. Many thanks to all who voted!
Separately, Cathay Cargo has been nominated for two awards from Asia Cargo News for the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards! Vote now for Cathay Cargo for “Best Air Cargo Carrier – Asia” (#27) and “Best Green Air Cargo Carrier” (#48).
