Date: Mar 27 2017
Title: Air Freight Market Update Report for Week 13

Demand for air freight space throughout the region remains very strong.  Air carriers serving air freight gateways in China increased rates another 10% to 15% last week. Gateways in Korea, Taiwan, Vietnam and India and have experienced similar increases. Transit hubs are experiencing congestion and delays.  We expect demand for space to ease this coming weekend with the end of the first quarter.

Following are highlights from around our Asian network.


Shanghai: Surging demand for space combined with the cancellation of a number scheduled freighters has contributed to 1 – 3 day cargo backlogs and enabled carriers to raise rates. Available space to the US East Coast is especially tight.  Rates increased approximately 10% to 15% last week.
Shenzhen & Guangzhou: Space to the US remains tight and 2 – 3 days advance booking is required.  Rates are up 10% to 15%. 
Xiamen: Most carriers have increased rates 10% to 15%. Transit times are running an extra 2 – 3 days. Advance booking is a must.
Hong Kong: Available air space remains tight this week, especially to LAX and ORD. Strong demand for space has supported continuous air carrier rate increases which will persist into this week.


Delhi: There has been a surge in demand requiring 3 to 4 day advance booking. Combined with heavy cargo traffic passing through transit hubs, carriers have been able to impose rate increases in the range
Bangalore: Demand for space is building and available space is tight to the US and UK.
Mumbai: Available space is very tight to Europe and the US primarily because shippers are converting ocean shipments to air caused by a shortage of containers. Advance booking is required.
Chennai: Airport operations are complete mess caused by heavy demand for space.  It is taking truckers a minimum of 8 to 10 hours to reach the airport and upon arrival there is no space to off-load cargo at the ramp. Airlines are only accepting one ton of cargo per day and accepting perishable cargo on a priority basis. Carriers have aggressively increased rates to Europe despite not being able to confirm a departure date. Transit times are running an extra 6 to 8 days.

Korea: There is strong demand for space from both local and transfer shippers. Space is fully booked through the end of March. There is 800 tons of LG displays moving to Mexico via US gateways. OZ began applying express rates effective from the weekend. 

Sri Lanka: Air cargo demand tailed off last week and rates remained unchanged

Taiwan: CI has a backlog of 130 tons of cargo destined to the US and Europe and BR is reporting a backlog of 170 tons as well.

Thailand: Demand for export cargo space surged last week with the approach of the quarter end.  All airlines are experiencing heavy cargo flows through transit hubs.  Airlines have stopped quoting spot rates through this week.

Vietnam: There is not adequate space to meet demand and air carriers continue to offload an average of 250 CBM’s of cargo in SGN and HAN on a daily basis.  Transit times are running an extra 10 days and carriers are rejecting cargo as shippers chase constantly increasing rates.

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