All-cargo airline Atlas Air on Thursday announced that YunExpress, a freight forwarder based in China that specializes in cross-border small package delivery, has signed a long-term transportation services agreement for dedicated use of a Boeing 777-200 freighter.
YunExpress launched its first 777 charter service, operated by Atlas Air, in December between Xiamen, China, and Miami. Atlas Air did not issue a news release at the time about the new partnership.
YunExpress is a subsidiary of Zongteng Group, a large, China-based provider of cross-border warehousing and logistics services for e-commerce sellers.
Atlas Air will begin operating YunExpress’ second freighter in April six times per week on trans-pacific routes between China and the U.S.
A contract for dedicated carriage gives customers like YunExpress more control over an aircraft’s use and more consistent service than booking cargo on a scheduled commercial service available to anyone.
The news highlights how e-commerce players in China have become the primary growth engine for the air cargo industry in the past year, helping to accelerate the demand recovery from a lengthy downturn. Many of them are seeking out dedicated freighter capacity.
“Cross-border e-commerce is driving significant demand for Atlas’ dedicated large widebody freighter capacity,” said Atlas Air CEO Michael Steen.
Zongteng purchased its own 777 and subleased it to China-based Central Airlines in early 2023 to fly its cargo from Shenzhen, China, to Paris. It now has two 777s in service. One freighter operates multiple times per week between Shenzhen; Riyadh, Saudi Arabia; and Paris. The other connects Xiamen, China; Tianjin, China; and Paris, with occasional service to Shenzhen, according to tracking site FlightRadar24.
Privately held Atlas Air had revenue of $4.5 billion last year. It has 113 aircraft in its fleet across four aircraft types. Holding company Atlas Air Worldwide has 16 777s under control, including ones its leasing subsidiary rents to other airlines, ones owned and operated by Atlas and others provided by customers for Atlas to operate. The airline is scheduled to receive two more 777 freighters from Boeing this year.
Atlas operates 777s for customers such as DHL Express and MSC Air Cargo. Some planes still bear the logo of Southern Air, a company Atlas acquired several years ago and provides international airlift for DHL.
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