Date: Apr 10 2017
Title: Air Freight Market Update Report for Week 15

Demand for space has abated at Chinese air freight gateways following the end of the first quarter and Ching Ming festival, although congestion remains at major air freight transit hubs such as Taipei (TPE) and Incheon (ICN). On the other hand air freight gateways in India and Thailand continue to report strong demand, some congestion and longer transit times.

Following are highlights from around our Asian network.

Bangladesh: Demand for space to US and European gateways continued to build throughout the week.  Airlines require 4 – 5 days bookings in advance to ensure a scheduled departure and onward connections at transit hubs. 

China: Most air freight gateways are reporting that demand for space has eased following the Ching Ming holiday. However space is still tight and rates remain little changed from mini-peak levels.

Hong Kong: Manufacturers suspended production for a few days during the Ching-Ming Festival which resulted in less demand for space. Air carriers held firm on rates in anticipation of increasing demand for space next week.

Delhi: There has been a surge in demand for space causing space issues for carriers and enabling them to impose Express rates as a condition to provide booking options. European carriers have increased rates by approximately 20%. Airport operator CELEBI has imposed a restriction on airlines to only accept cargo which can be uplifted within the next 24 hours.
Kolkatta: Available space is tight and rates are higher than last week. Most carriers are reporting congestion which is causing a 3 – 4 delay in uplift of cargo.
Bangalore: There is strong demand to US and UK gateways.
Mumbai: Market demand for space continues to be very strong to gateways in the US, Europe and Gulf region. Advance booking is a must and most carriers have a backlog of cargo. Transit times remain the same as last week.  These market conditions are expected to persist through the middle of the month. Chennai: A surge in demand for space has resulted in serious congestion, higher rates and transit times running 2 – 3 days longer than normal. Carriers serving US and European gateways are giving priority to cargo booked on Express rates.

Korea: Congestion at ICN persists because heavy flows of transit cargo prior to the Ching Ming holidays. Consequently carriers were able to further increase rates in the range of 7% to 10% over last week.

Taiwan: CI and BR continue to report approximately 250 tons of backlogged cargo destined to US and European gateways.

Thailand: Demand for space is very strong to US and European gateways as factories pump out production in advance of the Songkran holidays (April 13 – 17). Following next week air carriers anticipate demand for space to ease until the third week of April.

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