Vaccine Transportation Has Become A New Business Opportunity, And 8000 747 Freighters Are Needed To Transport One Dose Per Person In The World

With the good news of the new crown vaccine, vaccine transportation has become the focus of attention.

The International Air Transport Association (IATA) issued guidelines on November 18 to ensure that air cargo is ready for large-scale processing, transportation and distribution of the new coronapneumonia vaccine. Cai Guoxian, member and general manager of International Aviation Association (IATA) North Asia region and general manager of foreign relations, disclosed at the civil aviation trend forum that 8000 747 full freighters would be needed for the transportation of billions of doses of vaccines per person in the world. This market will undoubtedly provide support for the prosperity of air cargo transportation.

The 21st century economic reporter noted that the global aviation sector has been "booming" recently. Since November 9, the share prices of aircraft manufacturers Boeing and Airbus have risen by nearly 30%. Major global airlines, including Cathay Pacific, Delta Airlines and Southwest Airlines, have risen by nearly 20%. Aercap and BOC aviation leasing have rebounded by more than 45% and 20% respectively. The stock prices of China's large aviation industry listed companies, including Air China and Shanghai airport, have rebounded by more than 15%. Bohai leasing, whose main business is aircraft leasing, has also stepped out of the market. On the evening of November 17, Bohai leasing announced that avolon, a subsidiary of the aircraft leasing company, successfully completed the pricing of US $1 billion of preferential mortgage free notes. This also reflects, to a certain extent, the current capital market's confidence in the recovery of the aviation industry.

Civil aviation preparation for vaccine transportation

Alexander de junyak, President and chief executive officer of IATA, said that the entire supply chain would face extremely complex transportation challenges in order to effectively transport and store billions of doses of deep frozen vaccines to the world. Although the current challenge for the aviation industry is to implement the detection measures for new coronavirus, and realize the re opening of the border without isolation, "at the same time, we need to be ready for the vaccine to be put into the market. This guide is an important part of the preparation. "

It is understood that the main challenges for the logistics and distribution of vaccines and medicines include the availability of temperature controlled storage facilities and the identification of the roles and responsibilities of parties involved in vaccine distribution, in particular government and non-governmental organizations, in order to facilitate safe, rapid and equitable distribution as widely as possible. There are also problems with the transportation capacity and connectivity of vaccine distribution. After all, the global airline network has been greatly reduced from 22000 cities before the outbreak. Governments need to re-establish air links to ensure that there is enough capacity for vaccine distribution.

IATA also pointed out that there are still problems with facilities and infrastructure in the transportation of vaccines. The first vaccine manufacturer to apply for regulatory approval required the vaccine to be transported and stored in a deep frozen state, and the ultra-low temperature cold chain facilities in the supply chain are essential. Some types of refrigerants are classified as dangerous goods and their volumes are specified, which adds more complexity. IATA guidelines point out that the availability of temperature control facilities and equipment, as well as staff training in vaccine processing time and temperature sensitivity, need to be considered.

In addition, the timely supervision of approval, storage and customs clearance by customs and health authorities is essential. The priorities of the border process include the provision of fast track for overflight and landing permits for flights transporting the new cap vaccine, as well as possible tariff relief for vaccine transportation. At the same time, as a high-value commodity, vaccines must be effectively arranged to ensure that they are not tampered with and stolen. Although the relevant processes are in place, large quantities of vaccine transportation need to be planned early to ensure that these processes can cope with large-scale transportation needs.

Vaccine stimulates aviation recovery

The prospect of vaccine transportation strongly stimulated the recovery of global aviation market. CITIC Securities believes that in 2021, the growth gap between supply and demand of the domestic line of spring transportation is expected to turn positive and continue to expand. Adding factors such as low oil price and exchange rate appreciation, the improvement of supply and demand structure is expected to support the reconstruction and prosperity of aviation fundamentals in the next two years. Vaccine research and development is expected to accelerate the recovery of international passenger flow. Cai Guoxian pointed out that the recovery of international air travel is slow, but the recovery of freight is strong. The problem now is that there is a serious shortage of cargo capacity due to the lack of abdominal cabin capacity.

Huang Hui, vice president of Shunfeng, told the 21st century economic reporter that due to the strong demand for transport capacity, the company has leased more than a dozen freighters from other companies. In addition to its own 61 freighters, the fleet size of SF has reached more than 70. The reporter also noted that with the dawn of the recovery of the aviation industry, recently, the leading aircraft leasing enterprises have actively seized the intensive financing in the window period of the capital market, so as to further optimize the asset liability structure and lay the foundation for the steady expansion of the aviation industry after the recovery.

Aircraft leasing industry began to develop in the 1970s, and has gradually become an important part of the air transport field. It has become one of the most effective ways for airlines to solve the contradiction between fleet expansion and capital shortage. The analysis report shows that since 2020, affected by the impact of the new crown epidemic, airlines prefer to introduce aircraft through sale and leaseback in the short term to save capital expenditure and maintain good liquidity. The global market share of aircraft leasing companies is expected to further increase and reach 50% in 2023-2024.

Since the end of the month, the company has issued a total of US $1.5 billion in fixed term loans, including aircraft leasing, aircraft leasing, etc. of the world's largest companies, such as aircraft leasing, aircraft leasing, and so on. Avolon, the world's third largest aircraft leasing company affiliated to Bohai leasing, also completed the issuance of US $2.4 billion of senior mortgage free notes during the year.

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