Date: Jan 23 2017
Title: Air Freight Market Update Report for Week 04

Demand for space continued to build last week across Asia in advance of Lunar New Year (January 27th). Air carriers began increasing rates and cargo backlogs have been reported in Taiwan. As the last rush of cargo is shipped out before the Lunar holiday, transit hubs may experience slight delays in transit times.

Following are highlights from around our Asian network.

Bangladesh: The second phase of Bishwa Ijtema will be held from January 20 to 22 in the immediate vicinity of Hazrat Shahjalal International Airport (DAC).   There will be serious traffic congestion associated with the Ijtema which will delay cargo transport to and from the airport. Airport operations will be normal and there have been no announcements of flight cancellations.

Shanghai: Shipments to US and European gateways are backlogged one to two flights.  Demand for space has surged in advance of factory closings for the Lunar New Year holidays (Jan 27th – Feb 2nd). Rates to US gateways are approximately 30% to 40% greater than a week ago and rates to European gateways are up about 40%.
Shenzhen: Available cargo space to the US and Europe is tight.  Advance booking of 2- 3 days is required. CA flights to LAX are fully booked.
Guangzhou: Strong demand for space to the US and Europe means shippers should allow for 2 – 3 days advance booking and one day for cargo terminal warehouse entry. Airfreight rates to the US and Europe are 5 - 10% higher than last week. 
Hong Kong: Similar to other Chinese air freight gateways, HKG rates have been increasing in tandem with strong demand for cargo space.  There are however no reports of backlogs.
India: Peak season conditions for both air and sea shipments will start in February and continue through the end of April. Otherwise all gateways are currently reporting sufficient space to meet demand and stable rates. 
Chennai: The Chennai Trailer and Lorry Owners association declared a one day sympathy strike on January 20th to protest the Supreme Court’s decision to ban the traditional post-holiday celebration of Jallikatu, an activity similar to Pamplona’s running of the bulls. 

Korea: Despite surging demand for both local and transit cargo space, available capacity has been able to handle the volumes and minimize backlogged cargo. Air freight rates to the US and Europe are unchanged from last week. Some Chinese carriers such as MU and NH have announced flight cancellations before and during the Lunar New Year Holidays.

Sri Lanka: Market conditions are normal: adequate space to meet demand and stable rates.

Taiwan: There is a serious backlog (85 tons) of cargo destined to US and European gateways.

Thailand: Space is tight because of strong demand from local shippers and smaller space allocations from air carriers that have been committed to shipments coming out of China. Airlines require one week advance booking.

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