The first cargo route under the fifth freedom rights. Photo by Sun Jiayi
On October 30th, the cargo route of "New York-Ningbo-Incheon-New York" successfully completed its maiden flight under the support of "the fifth freedom of the air" (the fifth freedom). This means that Ningbo Area of China (Zhejiang) Pilot Free Trade Zone has made significant achievements in promoting innovation in air freight and building itself into an international transit hub.
The fifth freedom of the air (aka. third country traffic rights) guarantees the right to an international airline to stop and carry passengers and cargo at intermediate points along its route. Embracing the significant economic value, this flight right symbolizes a region’s business environment and opening-up level.
This first fifth-freedom route of Ningbo accepts two cargo flights per week, connecting Ningbo with the air cargo network of New York and Incheon and further consolidating the international influence of Ningbo’s “Air Silk Road”. Additionally, foreign flights are granted the privilege to pick up and deliver at Ningbo Airport along their routes. This potential boost to international transit cargo at Ningbo Airport will advance the city's capacity of cargo aggregation and distribution, speed up the construction of Ningbo's international air cargo network, and expand the freight market to the world.
Ningbo’s international logistics has, as Yan Guoping (general manager of China-Base Logistics Co., Ltd.) revealed, “long been in a situation of ‘busy seaports but sluggish airfreight’, but it is now making great progress.” Yan further explained that, without the airline route of New York-Ningbo-Incheon-New York, local enterprises would have to fly goods to New York with a stopover in Shanghai or other cities. Now, these small-batch, high-value, and time-sensitive e-commerce parcels can fly from Ningbo to US consumers in less than 10 days.
"Being granted the fifth freedom rights, importers and exporters in Ningbo and neighboring cities will enjoy more logistics options. By virtue of its low cost and high efficiency, Ningbo Airport attracts more air cargo from cities around the Yangtze River Delta and transports them out in a flexible and coordinated manner, thus enhancing its global reach," Yan added.
There are 16 cities in China already granted the fifth freedom rights, including Beijing, Shanghai, Guangzhou, Yantai, Wuhan, Xiamen, Haikou, Tianjin, Nanjing, Yinchuan, Zhengzhou, Harbin, Manzhouli, Ordos, Xi'an, and Hangzhou. This has boosted the above cities’ volume of transit cargo and strengthened their roles as transport hubs.
In September 2020, Ningbo was officially included in the expansion of Zhejiang Pilot Free Trade Zone. The expansion plan clearly states that Ningbo Lishe International Airport (NGB/ZSNB) will be granted a wider range of aviation rights, including the fifth freedom which enables Ningbo to explore intercontinental routes and build an international transit hub.
"The fifth freedom is the right that Ningbo has worked long and hard to secure and is vital to the future development of Ningbo Airport. With the construction of Terminal 3 and the second runway as well as the planning of Ningbo West Hub, the cargo throughput of Ningbo Airport is expected to exceed 130,000 tons and is primed for future growth," analyzed Yang Jian, director of the Institute of Management & Engineering, Ningbo University of Technology.
The grant of the fifth freedom was, according to Chen Xuqin (executive director of Development Research Center of the State Council (Dong Hai Branch)), a significant milestone in transforming Ningbo into an international transit hub:
"It is suggested that Ningbo proactively open up intercontinental routes of ‘Japan/South Korea-Ningbo-Central and Eastern Europe (CEE)’, ‘Japan/South Korea-Ningbo-Australia’ and ‘Japan/South Korea-Ningbo-Middle East’. The city should seize the opportunity of constructing Ningbo West Hub, develop both passenger and freight transport, and attract airlines to set up their regional bases or headquarters in Ningbo. All of these efforts will help Ningbo build an air-trade hub between China and CEE countries and even the rest of the world. "