Date: Oct 30 2017
Title: Air Freight Market Update Report for Week 44

Air space demand increasing due to launch of APPLE IPHONE. Space for US & EU is over booked.
Uplift lead time takes around 1 day or 2 at origin. 4-5 days advance booking is required by the airlines
Rate is at upward trend lasting for weeks in November.

Air market situation is stable on both rate & space. Transit time is longer than normal about 2-3 days due to the connecting hubs critical situation approaching Thanksgiving: Origins BJS, SHA, NRT, TPE, HKG & ICN has 3-4 days advance booking from airlines is required in order to get a confirmed connecting plan.

Hong Kong
The market remains busy this week. Demand for air freight transportation keeps up high and space is very critical especially for the US. The market is filled by electronic products from Google, LG, Apple, Amazon, etc... Transit time is extended to at least 3-5 days port-to-port. In order to secure space and arrange flight plan properly, customers are always encouraged to place booking as early as possible.

Delhi (DEL):  Custom EDI system is normal but airlines are still accepting cargo with delay of 4-5 days saying the due to rush at transit hubs shipment are getting delayed onward connections.
Rate remain the same as last week. Shipments to all major US ports are getting longer transit by 7-8 days.
Even European Sectors, airfreight rate and transit time has increased,               

Kolkata (CCU): remains with no change but may be a sudden rush of cargo due to local festival. Airfreight rate potentially may increase by about 15%. Space is issue as onward connections are delayed.      
Bangalore (BLR): Space situation remains very tight for USA and rates are high.
Accepting cargo only against advance booking and sub to onboard confirmation

Mumbai (BOM): Continuos back-log at Mumbai airport and it is increasing day by day. 
Back-log of few major airlines are  BA: 35 Tons; EK: 50 Tons; QR: 40 Tons for Middle East, Europe, US Sectors.  Airlines are accepting the cargo on express mode for immediate booking and for normal booking they need 10-15 days advance booking request. Airlines have now stopped giving discount on the freight due to over booking. Custom EDI system is slow as usual and some times it hangs-up for hours. This causes inconvenience to customers and agents to clear the shipments. Long queue of trucks at the airport to cart the cargo is now become regular scene. EDI system is slow as usual and long queue of trucks at the airport to cart the cargo is now become regular scene.

Chennai (MAA):Airport Operation situation is normal but space still tight as most of the carriers issuing carting under mode of Express Rates. Only small shipments are considered in normal mode by most of the carriers.

Although most carriers announced of rate increase from week 44, there is no further confirmation.  Rates remain unchanged. Now carriers announce again of an increase 7~8% for USA gateways and 5% for Europe on top of Nov tariff. Market expects that carriers continue to try to increase rates until end of year 2017. Space at ICN for USA gateways is still very tight and unstable.  Same situation for Europe.
It is suggested to check case by case for rate & uplift for cargoes with special volume or dimension. 

Backlog at Taipei airport is around 140 ton.The space situation for air shipment to USA , Canada , South of America &  Europe gateways still tight due to high demand. Transit time remains longer than normal situation. EVA Air has implemented a rate increase of 10% to 15% for all the shipments from Taiwan to Europe effective 27Oct 2017.

Sri Lanka
Cargo volume and market situation remain stable.

Increasing demand of export cargo from Thailand to USA & Europe gateways during month end period.
Some airlines such as KLM & QF informed the space fully booked until early next month.
The space situation at usual Asian transit hubs is tight due to a lot of cargo from these origins.
Most airlines accept only ad-hoc high rates to move cargoes.

Transit time remain longer than normal situation.
Advance booking of at least 1 week required.

No improvement on market situation comparing last week.There is around 400 tons backlog at Hanoi and Ho Chi Minh respectively. Market predicts the current situation will prolong to end of this year.
Rate is increasing 30% to US and 28% to EU. Transit time is longer than normal, 10 days to US ports and 7-8 days to EU. Space may not be available even for express service

Copyright © 2013 Trans Global Logistics. 版权所有 不得转载