Air Canada said it is dropping its freighter operation into China. At the end of June, the Canadian carrier will return a leased MD-11 freighter to ACMI provider World Airways, terminating its all-cargo service between Shanghai and Toronto.

The airline said the decision was based on a capacity glut and declining yields. US carriers such as UPS and Polar have boosted their Shanghai operations. On the Chinese side, Shanghai Airlines and Yangtze River Express started US fl ights, and Jade Air Cargo was poised to start a B747-400ERF operation from Shenzhen via Shanghai to Vancouver and Houston last month.