Date: Nov 18 2016
Title: Air Freight Market Update Report for Week 47

Demand for space out of Greater China has eased slightly from last week although congestion remains at many transit hubs.  Consequently transit times are running longer than normal and carrier rates remain relatively unchanged.  Adding to longer transit times are delays being experienced by truckers who continue to experience delays in picking up cargo at major US gateways serving Trans Pacific flights.

Peak season conditions should begin to ease following the Thanksgiving holidays although the trucking delays could last well into the month of December.

Following are highlights from around our Asian network.

USA:  Truckers continue to experience delays in picking up freight at LAX/JFK/ATL/ORD cargo terminals that serve Trans Pacific carriers.  Trucker waiting times are ranging between 4 to 10 hours and in some cases longer. Under normal market conditions the turnaround ranges from 2 to 6 hours. 


Guangzhou and Shenzhen: Market conditions are a mixed bag – demand for space to the US has eased slightly from last week; however, space to Europe is very tight and requires 3 to 4 days advance booking. Carriers increased rates to Europe by 20% over last week.

Shanghai: The volume of electronic product shipments declined from last week which has freed up available space. Nonetheless space to major European gateways is overbooked through Tuesday. Rates to the US are down approximately 10% to 15% from last week.

Xiamen: Although demand for space has slowed down from last week there remains serious congestion and backlogs at transit hubs such as HKG/PEK/PVG/CAN/TPE.  Most carriers still require advance booking of 3 - 4 days and rates remain unchanged.

Hong Kong: Demand for space has eased slightly in advance of the Thanksgiving holiday, but is expected to pick up again the first week of December. Rates remain unchanged from last week.

India: Market conditions are stable: there is sufficient space to meet demand and rates are unchanged from last week. 

Indonesia: Demand for space remains strong and carriers are not offering spot rates to major US gateways. 

Korea: The backlog situation at ICN remains serious because of heavy volumes of transfer cargo.
The cargo backlog is particularly bad to JFK and ORD and is expected to continue throughout this week.  Rates remain unchanged, however carriers are not accepting large size shipments at tariff rates.

Pakistan: There is strong demand for space to the US.  Transit times to the US are ranging from 8 - 10 days subject to conditions at transit hubs. 

Taiwan: The serious backlog situation at TPE persists.  There is approximately 200 tons of cargo backlogged to US and European gateways.

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