17/05/2020
- There has been strong demand for air freight services since April, when Chinese factories got back to work
- Cargo flights have become critical in moving protective health equipment across the globe
Planes of German air carrier Lufthansa at the country’s largest airport in Frankfurt. Photo: Reuters
German freight carrier Lufthansa Cargo is expanding in China, surpassing 100 weekly flights for the first time, and adding new flights to Shenzhen.
Peter Gerber, CEO of Europe’s largest cargo airline, said there had been heavy demand for its services, though this might cool by the peak of summer.
“At the moment, cargo demand is very, very strong,” he told the Post. “It started to get strong in April, when Chinese industries got back to work, and after that we have seen a constant, heavy demand, a real peak.”
Cathay Pacific and Cathay Dragon report combined HK$4.5 billion loss for start of 2020
Global air freight capacity has been squeezed as two-thirds of the world’s aircraft have been grounded by the
Covid-19 pandemic.
The collapse of air travel has practically put a stop to passenger flights, which typically carry half of all air cargo.
Since the pandemic, cargo flights have been critical in moving protective health equipment across the globe. From sending masks and other supplies to China in February, the German carrier is now taking urgent supplies from the mainland back to Europe.
Peter Gerber says Lufthansa Cargo has a high responsibility in maintaining supply chains, for both global health and world trade. Photo: Handout
“We have a high responsibility in maintaining supply chains in these unprecedented times for both global health and world trade,” Gerber said.
With the addition of Shenzhen, Lufthansa Cargo will fly to five destinations in China. It serves more than 300 destinations in 100 countries.
The cargo carrier is part of the Lufthansa Group and coordinates all the freight that goes into the passenger planes of its sibling brands, including Lufthansa, Swiss and Austrian.
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By next week, Lufthansa Cargo will be running more freight flights to China than the 72 passenger flights the group flew weekly before the pandemic to Beijing, Shanghai, Shenyang, Nanjing and Qingdao.
Lufthansa Cargo has a fleet of seven Boeing 777 Freighters (777Fs), with two new 777Fs arriving this year as part of its strategy to operate a fleet with a single aircraft type.
It also has six McDonnell Douglas-11Fs that Gerber said would still be retired as planned at the end of 2020, despite the extra demand for cargo capacity.
Its additional flights to China will make use of “preighters” – passenger aircraft flying cargo only. Gerber felt the trend of using empty passenger planes as “preighters” had peaked, pointing out that they cost the same to operate as freighters but carry only a fraction of the cargo.
Although he did not rule out future expansion, he said: “Demand will gradually come down in the next two or three months because a lot of equipment would have been shipped by then and some shipments will go on rail or ocean shipping.”
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He said some uncertainty remained over continued demand for airfreighted cargo, given the battered state of the world economy. Airlines would have to consider longer-term demand before deciding to invest more in cargo aircraft. “It depends how it looks beyond the next year,” he said.
Gerber said no decision had been taken yet on whether to convert some of the group’s orders for Boeing’s newest widebody 777X passenger aircraft into cargo planes.
He added that future plane orders would be balanced against the wider needs and spending decisions at Lufthansa Group, which is currently negotiating a government pandemic bailout package in the region of €9 billion (US$9.7 billion).
Source:SCMP
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02/05/2020
People work at a construction site of a utility tunnel in Wuhan, central China’s Hubei Province, April 30, 2020. (Xinhua/Xiao Yijiu)
BEIJING, May 1 (Xinhua) — China is getting the world’s largest workforce back to work as the nationwide battle against COVID-19 has secured major strategic achievements.
The unprecedented fight has nurtured new trends in the workplace. For example, more attention is being paid to public health and e-commerce to boost consumption and emerging sectors brought by new applications based on the country’s rapid new infrastructure development of 5G networks and data centers.
In this aerial photo taken on April 29, 2020, representatives of frontline health workers fighting COVID-19 attend a bell-ringing ceremony at the Yellow Crane Tower, or Huanghelou, a landmark in Wuhan, central China’s Hubei Province. (Xinhua/Xiao Yijiu)
ANGELS OF PUBLIC HEALTH
Ye Man, head nurse of gastrointestinal department of Hubei General Hospital East District, one of the five remaining COVID-19 designated hospitals in Wuhan, is taking her first weeklong vacation since January.
The 34-year-old mother of two started to take a week off on Monday, one day after her hospital cleared all remaining confirmed COVID-19 patients. The nine ICU wards in her hospital had been kept occupied over the past several months.
Friday marked International Workers’ Day, and the start of China’s five-day public holiday. Ye said she planned to visit urban parks with her family during the holiday.
At her busiest point, she and her colleagues took care of a ward filled with 40 COVID-19 patients.
“It was a really tough time,” she recalled. She had to wear a protective gown and a mask for nine hours a day and be separated from her family to avoid possible cross-infections.
Wuhan, capital of central China’s Hubei Province and once hard hit by COVID-19, cleared all confirmed cases in hospitals on April 26. Over 42,000 medical workers mobilized nationwide to aid Hubei have contributed to achieving a decisive outcome in the fight to defend Hubei and Wuhan.
In an inspection tour to Wuhan on March 10, President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, lauded medical workers as “the most beautiful angels” and “messengers of light and hope.”
To reward brave and dedicated medics, major tourist sites in Hubei are offering free entry to medical staff over the following two years.
Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about development of the black fungus industry in Jinmi Village of Xiaoling Township in Zhashui County, Shangluo City, northwest China’s Shaanxi Province, April 20, 2020. (Xinhua/Xie Huanchi)
LIVESTREAMING ANCHORS
“We have a new batch of supplies today. Those who did not get the goods should hurry to buy now,” said Li Xuying, a livestreaming anchorwoman selling agaric mushrooms in Zhashui, a small county deep in the Qinling Mountains in northwest China’s Shaanxi Province.
Li has been prepared for a boom of online shopping in the holiday, because online buyers rushed to her livestreaming website to place orders, after Xi inspected the county and chatted with her in the village of Jinmi during a recent tour to Shaanxi.
“I used to sell goods worth about 50,000 yuan (7,070 U.S. dollars) on average after a six-hour livestreaming session. Now the sales are 10 times that,” she said.
Li was one of the 10 sales staff sent by the local agricultural e-commerce firm to Chinese e-commerce platform Taobao’s headquarters for livestreaming training. She said livestreaming is effective in bridging buyers and farmers, through which viewers can watch planting and harvesting online.
With the number of netizens in China reaching 904 million in March, e-commerce has been one of the popular means of promoting the sale of farm produce and helping farmers shake off poverty. Despite the impact of COVID-19, the country is determined to eradicate absolute poverty by the end of this year.
Workers work at the construction site of a 5G base station at Chongqing Hi-tech Zone in Chongqing, southwest China, April 15, 2020. (Xinhua/Wang Quanchao)
HI-TECH WORKERS IN “NEW INFRASTRUCTURE” BUILDING
As an elasticity calculation engineer of Alibaba Cloud, Zhao Kun and his colleagues always stay on alert for high data flow, for example, brought by the anticipated online shopping spike during the holiday.
“The profession, which may sound obscure, is actually closely connected to everyone’s life, as cloud computing is the infrastructure supporting high-tech applications of artificial intelligence and blockchain,” said Zhao.
The Chinese leadership has underscored expediting “new infrastructure” development to boost industrial and consumption upgrading and catalyze new growth drivers.
Seizing the opportunities of industrial digitization and digital industrialization, China needs to expedite the construction of “new infrastructure” projects such as 5G networks and data centers, and deploy strategic emerging sectors and industries of the future including the digital economy, life health services and new materials, President Xi has said.
During the epidemic, Zhao and his colleagues expanded more than 100,000 cloud servers to ensure the stable operation of “cloud classrooms” and “cloud offices” for millions of people working and studying from home.
In the “new infrastructure” building, people like Zhao contribute to constructing the virtual infrastructure of an ecosystem, which enables e-commerce, e-payment, online teaching and the digital transformation of manufacturing and supply chain management.
In early April, China released a plan on promoting the transformation of enterprises toward digitalization and intelligence by further expanding the application of cloud and data technologies, to nurture new business models of the digital economy.
Source: Xinhua
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28/04/2020
BEIJING (Reuters) – China’s factory activity likely rose for a second straight month in April as more businesses re-opened from strict lockdowns implemented to contain the coronavirus outbreak, which has now paralysed the global economy.
The official manufacturing Purchasing Manager’s Index (PMI), due for release on Thursday, is forecast to fall to 51 in April, from 52 in March, according to the median forecast of 32 economists polled by Reuters. A reading above the 50-point mark indicates an expansion in activity.
While the forecast PMI would show a slight moderation in China’s factory activity growth, it would be a stark contrast to recent PMIs in other economies, which plummeted to previously unimaginable lows.
That global slump, caused by heavy government-ordered lockdowns, as well as the cautious resumption of business in China, suggests any recovery in the world’s second-largest economy is likely to be some way off.
“The recovery so far has been led by a bounce-back in production, however, the growth bottleneck has decisively shifted to the demand side, as global growth has weakened and consumption recovery has lagged amid continued social distancing,” Morgan Stanley said in a note.
“The expected slump in external demand has likely capped further recovery in industrial production.”
The latest official data showed 84% of mid-sized and small business had reopened as of April 15, compared with 71.7% on March 24.
Hobbled by the coronavirus, China’s economy shrank 6.8% in the first quarter from a year earlier, the first contraction since current quarterly records began.
That has left Chinese manufacturers with reduced export orders and a logistics logjam, as many exporters grapple with rising inventory, high costs and falling profits. Some have let workers go as part of the cost-cutting efforts.
A China-based brokerage Zhongtai Securities estimated that the country’s real unemployment rate, measured using international standards, could exceed 20%, equal to more than 70 million job losses and much higher than March’s official reading of 5.9%.
Sheng Laiyun, deputy head at the statistics bureau, said on Sunday migrant workers and college graduates are facing increasing pressures to secure jobs, while official jobless surveys show nearly 20% of employed workers not working in March.
Chinese authorities have rolled out more support to revive the economy. The People’s Bank of China earlier in April cut the amount of cash banks must hold as reserves and reduced the interest rate on lenders’ excess reserves.
Source: Reuters
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11/12/2019
- Best pilots from carrier-borne squadrons sent to naval academy for warship training to meet ‘urgent need’ for commanders
- They had to pass more than 10 assessments – from political thought to psychological testing – before they could join the programme
China’s second aircraft carrier, the Type 001A, is expected to be operational by the end of this year. Photo: Sina
The Chinese navy is training fighter pilots experienced in carrier-borne operations to command and manage its warships as it seeks to expand its global naval power.
Its best pilots from carrier-borne squadrons – including some qualified to fly fighter jets during both daytime and at night – were sent to a naval academy for warship combat and command training late last month, PLA Daily reported on Monday.
It did not say how many pilots had been selected, but all of them were required to pass more than 10 assessments – ranging from political thought to psychological testing – before they could join the training programme, the official People’s Liberation Army newspaper said.
Beijing-based naval expert Li Jie said the programme would focus on command and control skills for air and sea operations, and some of the pilots would ultimately be selected to command China’s new aircraft carrier strike groups.
As part of its ambition to build a powerful blue-water navy that can operate globally, China plans to have four aircraft carriers in service by 2035. Its second aircraft carrier – the first built in China, known as the Type 001A – is undergoing sea trials and is expected to be operational by the end of this year.
Work on the more modern Type 002 carrier started two years ago and a naval source told the South China Morning Post that construction of a second Type 002 vessel could begin as early as 2021.
But they will need suitable carrier pilots to take command.
“It’s quite an urgent need for the Chinese navy to have carrier group commanders – like its Western counterparts do – who are capable of commanding different warships and aircraft in modern joint-operation combat situations,” Li said.
China to deploy Sharp Sword stealth drone for new Type 001A aircraft carrier
“Aircraft carrier strike groups are supposed to sail on the high seas and into unfamiliar territory, so aside from having a background as naval aviators, all commanding officers should have a broad set of skills and knowledge – from foreign languages and international maritime law to air and sea operations – to help them make good decisions,” he said.
Other navies, such as the United States Navy, require more experience for the role – commanding officers of US aircraft carriers must be former naval aviators as well as former captains of different types of warships.
For example, Captain Pat “Fin” Hannifin, commanding officer of the Nimitz-class aircraft carrier USS Ronald Reagan, has over 2,800 flight hours in 33 different aircraft under his belt. He was also executive officer on another aircraft carrier and commander of an amphibious transport dock.
Rear Admiral Li Xiaoyan, the first captain of China’s only active aircraft carrier, the Liaoning, was a pilot with no experience on carrier-borne aircraft, though he did have experience on a destroyer and frigates. He was replaced by Zhang Zheng just days after the Liaoning formally joined the PLA Navy in 2012, and later by Liu Zhe – neither of whom had naval aviator backgrounds.
Li Xiaoyan was one of the first group of 10 pilots selected for a training programme designed specifically for China’s future aircraft carriers back in 1987. But the whole aircraft carrier plan was suspended in 1998 by premier Zhu Rongji for political and economic reasons, according to China’s Carrier, a book published by China Development Press.
China’s navy begins national search for trainee top-gun pilots
Naval expert Li Jie said the Chinese navy now had to catch up in terms of training pilots, and especially commanding officers, for its aircraft carriers.
“China resumed the aircraft carrier plan and in 2004 started refitting the hull of the Varyag. But after that first group of pilots was trained in 1987, there was no formal training in air and sea operations because there was no aircraft carrier training platform until 2012,” Li said, referring to the unfinished Admiral Kuznetsov-class vessel China bought from Ukraine in 1998, which became the Liaoning.
He said the latest training programme for commanding officers was a continuation of the one that began more than 30 years ago.
Source: SCMP
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19/05/2019
- US paper mills are expanding capacity to take advantage of a glut of cheap waste materials
- Some facilities that previously exported plastic or metal to China have retooled so they can process it themselves
China phased in import restrictions on scrap paper and plastics in January last year. Photo: AP
The halt on China’s imports of waste paper and plastic that has disrupted US recycling programmes has also spurred investment in American plants that process recyclables.
US paper mills are expanding capacity to take advantage of a glut of cheap scrap. Some facilities that previously exported plastic or metal to China have retooled so they can process it themselves.
And in a twist, the investors include Chinese companies that are still interested in having access to waste paper or flattened bottles as raw material for manufacturing.
“It’s a very good moment for recycling in the United States,” said Neil Seldman, co-founder of the Institute for Local Self-Reliance, a Washington-based organisation that helps cities improve recycling programmes.
Global scrap prices plummeted in the wake of China’s ban. Photo: AP
China, which had long been the world’s largest destination for paper, plastic and other recyclables, phased in import restrictions in January last year.
Global scrap prices plummeted, prompting waste-hauling companies to pass the cost of sorting and baling recyclables on to municipalities. With no market for the waste paper and plastic in their blue bins, some communities scaled back or suspended kerbside recycling programmes. But new domestic markets offer a glimmer of hope.
How China’s ban on plastic waste imports became an ‘earthquake’
About US$1 billion in investment in US paper processing plants has been announced in the past six months, according to Dylan de Thomas, a vice-president at The Recycling Partnership, a non-profit organisation that tracks and works with the industry.
Hong Kong-based Nine Dragons, one of the world’s largest producers of cardboard boxes, has invested US$500 million over the past year to buy and expand or restart production at paper mills in Maine, Wisconsin and West Virginia.
Brian Boland, vice-president of government affairs and corporate initiatives for ND Paper, Nine Dragons’ US affiliate, said that as well as making paper from wood fibre, the mills would add production lines turning more than a million tonnes of scrap into pulp to make boxes.
“The paper industry has been in contraction since the early 2000s,” he said. “To see this kind of change is frankly amazing. Even though it’s a Chinese-owned company, it’s creating US jobs and revitalising communities like Old Town, Maine, where the old mill was shuttered.”
Hong Kong-based Nine Dragons has invested US$500 million in paper mills in Maine, Wisconsin and West Virginia. Photo: Handout
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The Northeast Recycling Council said in a report last autumn that 17 North American paper mills had announced increased capacity to handle recyclable paper since the Chinese cut-off.
Another Chinese company, Global Win Wickliffe, is reopening a closed paper mill in Kentucky. Georgia-based Pratt Industries is constructing a mill in Wapakoneta, Ohio that will turn 425,000 tonnes of recycled paper per year into shipping boxes.
Plastics also had a lot of capacity coming online, de Thomas said, noting new or expanded plants in Texas, Pennsylvania, California and North Carolina that turned recycled plastic bottles into new bottles.
Chinese companies were investing in plastic and scrap metal recycling plants in Georgia, Indiana and North Carolina to make feedstocks for manufacturers in China, he said.
GDB International processes bales of scrap plastic film into pellets to make garbage bags and plastic pipe. Photo: AP
In New Brunswick, New Jersey, the recycling company GDB International exported bales of scrap plastic film such as pallet wrap and grocery bags for years. But when China started restricting imports, company president Sunil Bagaria installed new machinery to process it into pellets he sells profitably to manufacturers of garbage bags and plastic pipe.
The imports cut-off that China called “National Sword” was a much-needed wake-up call to his industry, he said.
“The export of plastic scrap played a big role in easing recycling in our country,” Bagaria said. “The downside is that infrastructure to do our own domestic recycling didn’t develop.”
China to suspend checks on US scrap metal shipments, halting imports
That was now changing, but he said far more domestic processing capacity would be needed as a growing number of countries restricted scrap imports.
“Ultimately, sooner or later, the society that produces plastic scrap will become responsible for recycling it,” he said.
It has also yet to be seen whether the new plants coming on line can quickly fix the problems for municipal recycling programmes that relied heavily on sales to China to get rid of piles of scrap.
About US$1 billion in investment in US paper processing plants has been announced in the past six months, according to a non-profit group that tracks the industry. Photo: AP
“Chinese companies are investing in mills, but until we see what the demand is going to be at those mills, we’re stuck in this rut,” said Ben Harvey, whose company in Westborough, Massachusetts, collects trash and recyclables for about 30 communities.
He had a car park filled with stockpiled paper a year ago after China closed its doors, but eventually found buyers in India, Korea and Indonesia.
China to collect applications for scrap metal import licences from May
Keith Ristau, chief executive of Far West Recycling in Portland, Oregon, said most of the recyclable plastic his company collected used to go to China but now most of it went to processors in Canada or California.
To meet their standards, Far West invested in better equipment and more workers at its material recovery facility to reduce contamination.
In Sarepta, Louisiana, IntegriCo Composites is turning bales of hard-to-recycle mixed plastics into railroad ties. It expanded operations in 2017 with funding from New York-based Closed Loop Partners.
“As investors in domestic recycling and circular economy infrastructure in the US, we see what China has decided to do as very positive,” said Closed Loop founder Ron Gonen.
Source: SCMP
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CHINDIA ALERT: You'll be living in their world, very soon 