Date: Jan 03 2017
Title: Air Freight Market Update Report for Week 01

Market conditions this past week were typically quiet during the holidays - no congestion and stable rates. A number of airlines cancelled flights because of soft demand. The Korean Airlines pilot strike primarily impacted domestic and Intra-Asia flights. 

Starting off the new year, there will be adequate space to meet demand and stable rates. However be mindful that Lunar New Year is early this year (January 27th) and demand for space will pick up around the middle of the month as factories push out product prior to closing for the holidays.

Following are highlights from around our Asian network.

Shanghai: Although demand for space has eased, carriers have cancelled flights during the Christmas/New Year holiday week.  Consequently rates remain unchanged and space is tight.

Xiamen: There are no reports of congestion and adequate space to meet demand.

Guangzhou & Shenzhen: Air freight rates have trended down in tandem with softer demand for space to the US and Europe. Carriers such as CZ, NH, CI and HU are offering spot quotes for density freight during Christmas week.

Hong Kong: Strong demand for space prior to the holiday week emboldened carriers to boost rates. Subsequent to the Christmas holiday, market demand has eased considerably

India: Most gateways are reporting adequate space to meet demand although some carriers serving Bangalore have tight space conditions to the US and UK because of connection delays at transit hubs. 

Korea: The KE Pilots’ Union went on a 10-day strike beginning December 22nd causing the airline to cancel 148 flights, including 12 cargo flights. The cancelled flights represented approximately seven percent of the total scheduled flights during the strike period. The bulk of the cancellations impacted domestic and short haul (e.g., Japan, Hong Kong and Middle Eastern gateways) flights.  Despite the strike’s impact and additional cancellations by OZ, rates remained stable and there was adequate space to meet demand.

Sri Lanka: There was a sudden surge of export cargo prior to Christmas week. Rates spiked due to an increase in passenger loads and seasonal cargo.  The market situation should return to normal in January.

Thailand: Although local demand for export space to all gateways decreased prior to the holiday week, airlines continued to manage strong volumes of cargo at their transit hubs. Demand for space from BKK is expected to begin building starting the 2nd week of January prior to the Lunar New Year holiday. 

Vietnam: There is adequate space to meet demand during the holiday lull. 

    Home  │  Resources  │  i-Portal  │  Terms and Conditions  │  Sitemap  │  Contact Us
Copyright © 2013 Trans Global Logistics. All Rights Reserved