Turnover volume of air cargo will rise from its current 31 per cent to 50 per cent of China's total air cargo market, they said. Air cargo in China has risen 25 per cent per annum for the past five years, and is four times greater than the global growth rate. Last year, air cargo traffic with mail totalled 1.15 million tonnes, and this is expected to grow to 1.3 million tonnes this year, which will probably put China in the world's top 10. To keep up with market demand CAAC has imported some freighters, increasing its cargo fleet to 11. All the main airlines in China have their own air cargo department staff as well as back up services which include cargo yards, handling equipment, and a central computer management system.
Some airlines have a direct link with the forwarders as well as a trucking system for distribution.
However, mainland airlines all face competition from the open market, with 46 foreign airlines flying to China regularly these days. The foreign airlines have a 15 per cent market share in China's domestic market and this is growing fast. These hubs are attractive to newcomers and have forced local airlines, airport authorities, and Customs to change their attitude in the face of such strong competition. Also on the Pearl river delta, Shenzhen shouldn't be overlooked as it moves quickly to absorb the cargo source by upgrading its facilities as well as lowering airport charges in its constant battle to compete with Hong Kong. Shenzhen has also secured some international flights which improve efficiency while at the same time increasing competitiveness.