China’s transportation sub-sectors have witnessed diverging performance under COVID-19, with freight traffic outperforming passenger traffic, especially for road and rail transport, Fitch Ratings said. Passenger traffic is restrained, but the country prioritises freight shipment to limit economic disruption. Air freight and water passenger are insignificant.
In the third quarter this year (3Q 2022), passenger turnover by road, rail and air was 30 per cent, 56 per cent and 43 per cent respectively of the levels in 3Q 2019 due to pandemic-related mobility restrictions.
China's transportation sub-sectors have witnessed diverging performance under COVID-19, with freight traffic outperforming passenger traffic, especially for road and rail transport, Fitch Ratings said. Passenger traffic is restrained, but the country prioritises freight shipment to limit economic disruption. Air freight and water passenger are insignificant.
In contrast, freight turnover during that quarter by road, rail and water was 92 per cent, 117 per cent and 110 per cent of 3Q 2019 levels, as provinces aim to safeguard logistics to limit the impact on daily life and industrial supply chains even under lockdowns, Fitch noted.
Freight transport companies are, therefore, likely to keep outperforming peers in passenger transport in the short run, especially for road and rail, Fitch remarked.
Fibre2Fashion News Desk (DS)
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