Date: Nov 28 2016
Title: Air Freight Market Update Report for Week 48

It appears that peak holiday season shipping is starting to ease out of Greater China although some transit hubs continue to report backlog situations.  There has been some easing of rates although for the most parts carriers are holding the line on rate levels.  Truckers continue to experience delays in picking up cargo at airport terminals. 

Peak season conditions should ease further next week although trucking delays will last a bit longer.

Following are highlights from around our Asian network.

Guangzhou and Shenzhen: Demand for space to the US has eased slightly along with air freight rates that have gone down by approximately 5% compared to a year ago. Space demand and rates to Europe remain unchanged. 

Shanghai: There is adequate space to meet demand to US gateways although air carriers are holding the line on rates. Carriers are reporting improved conditions for freight transiting via HKG and TPE. The situation for cargo destined to European gateways is another matter.  Demand continues to be tight and rates are expected to increase again this week. Adversely impacting space availability to Europe, India and the Middle East has been the impact of changes made by carriers to redirect flight schedules.

Xiamen: Similar to Guangzhou, demand for space to US gateways and associated rate levels have eased whereas space to European gateways is overbooked on many airlines this week. 

Hong Kong: Market conditions are similar to last week: demand is down slightly, but prices remain on the high side.

Taiwan: Congestion continues, there is approximately 200 tons of cargo destined to the US and Europe in the process of being cleared.

Korea: Strong demand for space will carryforward into this week because of a combination of large volumes of transit cargo and strong demand from indigenous shippers moving out product before month end. Cargo remains backlogged to major US air freight gateways, but is expected to begin clearing the first week of December. Rates remain the same as last week. 

India: Most air freight gateways are reporting adequate space to meet demand.  Bangalore is reporting that space to the US and UK is a little tight because of delays at transit hubs.

Sri Lanka: The airport authority will be resurfacing runways from January through April. Consequently air carriers are rescheduling and/or reducing the frequency of flights. It is likely to expect a surge of demand for space in the period leading up to the runway closures.  

Turkey: There is adequate space to meet demand to most US gateways, the one exception being LAX which is over booked until next week

US: There continue to be delays encountered by truckers picking up air freight cargo at major US air freight gateways.   Waiting times are exceeding normal turnarounds (2 to 6 hours) and are expected to continue until the volume of holiday shipping begins to abate next week.

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