Jade Cargo, China’s first air freight joint venture, has temporarily suspended services due to undercapitalisation and weak demand in the Asia-Pacific market. The Shenzhen-based carrier said the suspension would enable “stakeholders to continue with the restructuring of the company’s financial structure”.

Founded in 2004, Jade Cargo is a joint venture between Lufthansa Cargo, Shenzhen Airlines and German development bank DEG. It operated a fleet of six B747 extended range freighters to destinations including Frankfurt and Dubai, as well as Shanghai, Chengdu and other Chinese cities.

For more than a year, Asia-Pacific freight carriers have experienced a sharp decline in transport volumes as a result of falling US and European consumer demand for goods manufactured in Asia. Between November 2010 and November 2011, volumes declined by 6.4 per cent, according to IFW.