Date: Nov 14 2016
Title: Air Freight Market Update Report for Week 46


Peak season demand and associated market conditions persist. Air freight shipments moving via transit hubs are subject to 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.

US/LAX:  The airport terminal is experiencing serious congestion with some airlines such as CI, CK, CZ, CA, and OZ.  Truckers are complaining about long waiting times which can range between 4 to 8 hours.  For carriers such as CZ, CA & OZ, it takes at least 48 hours from flight arrival until cargo is available for pickup.  Under normal market conditions the turnaround ranges from 3 to 6 hours. 

Cambodia: There is adequate lift to meet demand out of PNH; however, most carriers (such as CZ/QR/TG/NH/BR) have space constraints at transit hubs which are expected to last until December.  Spot rates can be negotiated with some airlines, subject to space availability at transit hubs. 

China:

Guangzhou and Shenzhen: Demand for space remains tight and is forecast to remain so through the Thanksgiving holiday.  Advance booking of 3 – 4 days is required. Airfreight rates to US and European gateways are up approximately 25%. 
Shanghai: Space to US and European gateways is fully booked until next week and some shipments are currently backlogged by one flight. Demand for space to Asian gateways remains strong, especially to TWN and SIN.  Consequently rates remain high and some lane segments are backlogged 2 – 3 flights.  Air carriers are not accepting new bookings to BOM and DEL until further notice and flight schedules are erratic. 
Hong Kong: Available air freight space remains very tight because of large volumes of mobile phone shipments by Apple, Samsung and LG; ongoing conversion of sea freight moving on Hanjin vessels to air; and a reduction in the number of charter flights in November associated with the implementation by the Civil Aviation Department of its new air traffic control system. Air freight rates are 40% above slack season levels and carriers continue to signal another round of increases for the middle of the month.

Korea: Heavy volumes of cargo transiting via ICN to US and European gateways are buoying rates and sustaining backlogs.  There has been a spike of inquiries for ocean and air shipments via ICN from shippers moving heavy cargo (more than several tons) out of China.  The level of cargo backlogs are expected to begin to ease by next week.  

Taiwan: TPE is reporting serious cargo backlogs of approximately 180 tons of freight destined to US and European gateways.

Thailand: Demand for space increased this week.  Airlines are recommending advance cargo bookings to secure space. QF freighter service on November 19 overflew BKK because it was fully booked with cargo from China. Airlines are not quoting spot rates and some airlines are only accepting cargo on Express rate. 

Vietnam: Strong demand for space persists allowing carriers to increase rates by 10-15% to US and European gateways.

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