Date: Oct 31 2016
Title: Air Freight Market Update Report for Week 44


Market conditions are similar to last week.  Strong demand for space continues at most Greater China gateways and in Korea. Shippers moving air cargo via transit hubs located in these countries can expect to be impacted by higher rates and slower transit times. We continue to recommend booking air freight space three - to - four days in advance.

Following are highlights from around our Asian network.

Bangladesh: Air freight market conditions have normalized.  There is adequate space to meet demand and most cargo backlogs have been cleared.

China: most major gateways in Greater China are reporting strong demand and the need for advance booking.

Guangzhou: Available space is very tight to the US and Europe this weeks. One week advanced booking is required. 
Shanghai: Market conditions are the same as last week – stronger demand than available space. All shipments will face a backlog of 2 - 3 flights.  If a longer transit time is acceptable, cargo can be routed via truck to alternate airports such as TAO/PEK/NKG/CGO/NGB.  Direct freighter service to the US is closed until Wednesday. OZ space to the US is backlogged 1 - 2 flights and EY has limited space to India and the Middle East.  
Xiamen: Available space to the US and Europe remains critical this week.  Most carriers are imposing another round of rate increases and requiring 3 – 4 days advance booking. 
Shenzhen: Space to major US and European gateways is very tight.  One week advance booking is required. 
Hong Kong: Similar to the above gateways demand for space exceeds supply and advance booking is needed

India: Most gateways are reporting adequate space to meet demand and stable rates. Bangalore is experiencing some space constraints primarily because of difficulty in securing space at transit hubs.

Korea: Normal month end shipping patterns have added to the already congested situation at ICN. Space to major US and European gateways are booked full through the weekend. Carriers are signaling that cargo will only be moved this coming weekend at Express rates and are quoting spot rates at a significant premium over published tariffs.
 
Sri Lanka: There is adequate space to meet demand and no reports of backlogs. 

Thailand: Demand for space has spiked in line with normal month end shipping patterns. Although there is sufficient space to meet local demand, carriers must check with their head office to determine if there is space at transit hubs in light of the strong cargo volumes moving out of China, Taiwan, Japan and Korea.  QF’s freighter flight scheduled on November 5th has been rerouted to fly over BKK because it is fully booked with cargo from China.

Vietnam: Carriers are reporting heavy backlogs in VN and at transit hubs, especially to US gateways.

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