A SWOT analysis of China's air cargo sector in the context of COVID-19 pandemic

Abstract

This paper discusses the situation of China's air cargo sector facing the COVID-19 pandemic. Based on the expectation that it can go out of recession more easily than China's air passenger sector, this paper analyzes four aspects that are favorable and unfavorable for its further development: (1) strengths (China's sustainable economic basis and proliferating cargo suppliers), (2) weaknesses (insufficient cargo capacity and less business internationalization), (3) opportunities (top authority support, rising e-commerce demand, and new technological momentum), and (4) challenges (uncertain trade environment and increasing profitability pressure). Then this paper suggests strategies for China's air cargo suppliers to adapt to the pandemic.

COVID-19 pandemic and air transportation: Successfully navigating the paper hurricane

“…Air cargo business has been rather resilient against COVID-19 ( Choi and Park, 2020 ; Kim et al, 2020 ; Li, 2020 ). Accordingly, cargo transportation can possibly be seen as a new opportunity for the aviation industry.…”

“…Other notable examples for reactions of countries are those of Germany and Great Britain, who apparently enforced the resumption of international flights, through their flagship carriers Lufthansa and British Airways. Notably, cargo flights were not affected significantly, given the need to transport medical equipment and the ambition to keep exchange of critical goods across borders alive ( Nhamo et al, 2020 ; Nižetić, 2020 ; Li, 2020 ). This effect has been further analyzed by Bombelli (2020) , who investigated the global networks of FedEx, UPS, and DHL, using network science tools; it was found that after short fluctuations in early stages, these integrators seem to have survived the pandemic rather unaffected.…”

“…(2020) Scenario analysis based on air passenger data comparing normal projections with COVID-19 and discussing implications such as loss in revenue and jobs inside Europe. Li (2020) The air cargo sector in China has suffered a less severe depression compared to air passenger traffic. Nhamo et al.…”

“…The aforementioned studies discuss the demand changes for passenger transportation. The demand in air cargo transportation has been rather stable throughout COVID-19 so far ( Choi and Park, 2020 ; Kim et al, 2020 ; Li, 2020 ).…”

CoVid19, a Threat or a Blessing to Globalization?

“…The outcome of this pandemic might be the end of Globalization, as the trade and dependency upon other countries will stop, or on the contrary, the consolidation of the Globalization, giving itself even an immense synergy in order to deepen and proliferate. The air cargo had [14] a less depression, and in some cases, an increase, especially, regarding the transportation of medical supplies and devices, tests, chemicals and so on, in comparison with the civil aviation that was drastically reduced or even forbidden.…”