Date: Jun 12 2017
Title: Air Freight Market Update Report for Week 24

Demand for airfreight space throughout the Trans Pacific region remains strong.  While their has been some easing in many Chinese gateways, it remains strong in Hong Kong, Taiwan, Korea, India and Southeast Asia.  Rates are a mixed bag, but running somewhat on the high side and transit times are a bit longer than normal because of lingering congestion at transit hubs.

Following are highlights from around our Asian network.

Bangladesh: There is adequate space to meet demand and rates are stable.  Air carriers require I – 2 days advance booking to secure timely uplift of cargo and reliable onward connecting flights at transit hubs. 

China: Major gateways are reporting an improvement in available space to the US and no backlogs. Shanghai rates are down approximately 8% from last week. Demand for space ex. Xiamen is still relatively strong and carriers require 3 – 4 days advance booking to US gateways. 

Hong Kong: Demand for space to US gateways (especially the West Coast) accelerated last week and space availability was tight. Customers are requested to place bookings 2 – 3 days in advance in order to optimize cost and routings.   

Delhi: There is adequate space to meet demand and rates remain unchanged. Problems persist with Custom’s EDI system which is delaying the processing of import and export shipments by 10 to 15 hours.
Kolkata: Leather and perishable commodities continue to ship in large volumes. Rates remain unchanged and transit times are running 3 – 4 days longer than normal.
Bangalore: Available space is tight and rates are still on the high side.
Mumbai:  The Custom’s EDI system is performing erratically causing delays in export processing and a building backlog of export cargo at the airport.
Chennai: Airport operations remain chaotic because of strong demand for space. Space is tight, remains remain high and transit times are running 3 – 4 days longer than normal.

Korea: Available space remains very tight because of a combination strong local demand associated with the Hyundai and GM recall programs and strong volumes of transit freight. Rates remain high although OZ and KE have announced an FSC reduction effective June 16 from $0.09/kg to $0.03/kg. Waiting time to uplift cargo is 3 – 4 days caused in part by space planning challenges posed by the bulky, non- standard nature of GM recall cargo. 

Sri Lanka: As expected cargo flows remain soft and are expected to remain so throughout the month because of Ramadan season which ends on July 5th.

Taiwan: Strong demand for space has enabled carriers to increase rates to the US and Europe.

Thailand: Available space is tight because of strong demand to US and European gateways. Transit times are running longer than normal and carriers continue to demand Express rates to insure the most direct routings.

Vietnam: Space allocations to US gateways remain challenging from both SGN/HAN because of congestion at transit hubs.  Transit times to the US are ranging between 7 to 10 days. Carriers are requesting advance booking one week in advance.

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