Date: May 30 2017
Title: Air Freight Market Update Report for Week 22


Last week marked another period of strong demand for airfreight space across the Transpacific region. New product launches by Apple and Samsung, car part shipments associated with Hyundai Motors' massive auto recall program and to a lesser extent China's Dragon Boat Festival (May 28 - 30) fueled the strong demand for space. 

Following are highlights from around our Asian network.

Bangladesh: Market conditions at Dhaka continued to improve although there are reports of tight space availability at transit points. There are no reports of backlogs despite all flights departing fully booked. Consequently it is advisable to book 2 – 3 days in advance in order to secure optimum route planning. Carriers have reduced rates in the range of 5% to 10%; however, spot quotes are not available.

China

Shanghai: The market experienced a dramatic surge in demand for space last week causing some carriers such as MU and CA to not only suspend new bookings to JFK, but also voided previously confirmed bookings. Demand was particularly acute to the US East Coast where cargo was backlogged 2 – 3 flights and rates increased 20% over last week. Carriers anticipate that demand will remain strong through month end and signaled another 20% rate increase to all US air freight gateways.
Xiamen: Available air freight space was tight last week in advance of the Dragon Boat Festival (May 28-30). Transit times were running 2 – 3 days longer than normal because of heavy backlogs at transit hubs.
Hong Kong: Strong demand carried forward from last week because of a combination of large volumes of space reserved for Apple and Samsung product launches and the Dragon Boat holiday. Rates to US gateways increased approximately 10%, transit times were running 1 – 2 days longer than normal and 2 – 3 days advance booking was required. 

India:
Delhi: There is adequate space to meet demand although advance booking is still required and subject to onboard confirmation. Airfreight rates have eased from last week although there remain 1 – 2 days delays in uplifting cargo and another 1 - 2 days delay at transit hubs to all US, European and Far East gateways.
Kolkata: Demand for space is up from last week. Airlines are reporting transit delays of 3 - 4 days although rates remain unchanged. 
Mumbai: A serious EDI problem plagued airport operations for two days last week. No exit or entry bills were processed despite heavy cargo flows.
Chennai: Demand for space remained strong last week and air carriers continue to report transit delays of 3 – 4 days to US and European gateways. Cargo moving on Express rates is given priority.

Korea: Very tight market conditions are being fueled by strong month end demand from local shippers, the impact of Hyndai Motors’ recall program and heavy volumes of transit cargo originating in China and other Asia origins. Demand for space to ATL/ORD/JFK is very acute and carriers have not announced any rate increases…yet.

Sri Lanka: There is adequate space to meet demand.  Cargo volumes are expected to remain low until the middle of next month. 

Taiwan: Cargo backlogs reported by BR and CI to US and European gateways are down about a third from last week at which time each carrier had about 120 tons on hand.

Thailand: Air export volumes to JFK, ATL, ORD and Europe are strong and available space is tight. These conditions are expected to carry into next week. Airlines are only accepting cargo at Express rates for the most direct routings.

Vietnam: Carriers are reporting heavy backlogs and are confirming space on a case-by-case basis. Transit time to the US is averaging seven days. Rates remain high and sometimes carriers are not accepting bookings even for Express rate service. 

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