Date: Jul 17 2017
Title: Air Freight Market Update Report for Week 29


Airfreight volumes from Asian gateways remain relatively strong across the region. Although transit hubs in Taiwan and Korea have been able to further reduce cargo backlogs, the congestion is still causing longer than normal transit times for air carriers using these hubs from Southeast Asia origins. Demand for space out of both Saigon and Hanoi continues to exceed capacity. Booking cargo in advance is a necessity at just about every major gateway in the region.

Following are highlights from around our Asian network.

Bangladesh: Available space is very tight in part because some major carriers such as QR,EY,EK,BA,KL have cut down their cargo allocation because of 2nd airport re-screening issues. Cargo congestion has started to build and carriers are charging higher rates for preferred uplift.  A minimum of five days advance booking is required.

China
Shanghai: Demand for space has declined primarily because Apple has paused its new product shipments. K4 launched new charter service on D4 to ORD. Maximum payload is 100 TONS of which approximately 20 - 30 tons per flight is available to the general market. Rates have come down 10 – 15% depending on the size and density of shipments. Shipments to Canada and Latin America are backlogged by two flights.
Hong Kong: Demand for space remains strong and available space is very tight. Airlines have signaled a new round of increases if demand remains strong. For optimal space planning, shippers should book cargo 2 – 3 days in advance.

India: Most major airfreight gateways continue to suffer from the slow performance of Customs’ EDI system. Advance booking is required and subject to onboard confirmation.  Kolkatta, Bangalore and Chennai report that available space is tight and rates remain high.

Korea: The cargo backlog at ICN continues to improve as the Hyundai and GM recall programs wind down. The volume of transit cargo is holding steady, consequently connecting flights are 1 to 2 days and rates are remaining firm. KE and OZ will reduce FSC charges to zero effective July 16th. Carriers have started to negotiate spot rates on a case-by-case basis. 

Sri Lanka: Market demand eased this week with air export volumes down slightly compared to last week.

Taiwan: Both CI and BR have cargo backlogs of approximately 140 tons to US and European gateways.

Indonesia: Demand for space is very strong and cargo will only be accepted on a space availability basis. 

Thailand: Demand for space remains relatively strong and transit times via TPE and ICN are running slightly longer than normal. Cargo bookings to LAX, ORD and ATL are especially strong and air carriers anticipate this trend to carry forward to month end. Advance booking is require at least one week in advance of desired uplift. 

Vietnam: Demand for space at SGN and HAN continues to outpace capacity. All airlines are overbooked to US and European gateways. Demand for space to LAX is especially strong. Rates remain high and transit times are running longer than normal (7+ days to LAX and 9 days to ORD & JFK)

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