Date: Jul 31 2017
Title: Air Freight Market Update Report for Week 31


Congestion at the regions' transit hubs has been cleared with the exception of Taiwan which still has a backlog of 90 tons. eased last week in tandem with a decline in demand for space. Airfreight volumes from Asian gateways remain relatively strong across the region, in part because of month end shipping. Rate levels remain persistently high for this time of year. Origins such as Shanghai, Hong Kong, Bangkok and Vietnam are reporting strong demand and tight space conditions. Booking cargo in advance is a necessity at these gateways.

Following are highlights from around our Asian network.

Bangladesh: There is a backlog of cargo at the DAC airport of approximately 3,000 tons caused primarily by second airport screening requirements. The airport authority expects to have the problem solved by the beginning of September. Meanwhile airfreight rates are up 20% to 30% and carriers are not quoting spot rates.

China
Shanghai: Demand for space to LAX is greater than capacity because of flight cancellations associated with high temperatures and large volume Apple shipments of the iPhone 8 (which are planned through the middle of August). Last weekend 100 tons of cargo destined to LAX was off loaded at PVG.  . Rates to the US East and West Coasts increased approximately 20-25%.
Xiamen: Availability of space to US gateways improved last week although carriers still require one week advance booking.  CI announced rate increases to the US East and West Coasts of 10% and 15%, respectively. 
Hong Kong: Demand for space remains very strong with no letup in sight. For the most part carriers are operating at full capacity. Airfreight rates remain unchanged and carriers require 2 – 3 days advance booking. 

India: Most airfreight gateways continue to be plagued by delays in Customs processing associated with the implementation of new GST rates.
Delhi: There is adequate cargo space to meet demand although advance booking is still required and subject to onboard confirmation. Airfreight rates have decreased marginally from last week.
Kolkata: Demand for space remains strong and rates are on the high side.  Carriers will only accept cargo against advance booking and subject to onboard confirmation.
Bangalore: Available space is tight and rates are still a bit high. 
Mumbai:   Monsoon rains have been causing heavy traffic jams at both the airport and seaport. Trucks hauling containers to the seaport were lined up for 10 kms last week.  

Korea: The good news is that persistent backlogs of cargo have been cleared at ICN. Demand for space remains strong because of normal heavy month end shipping and the approach of the traditional summer vacation season during the first week of August. Available space is expected to be tight this week and airfreight rates are unchanged from last week.

Taiwan: CI and BR are reporting approximately 90 tons of cargo backlogged at TPE that are destined to US and European gateways.

Thailand: Strong demand for space prior to month end to both US and European gateways. One week advance booking is required and transit times are running longer than normal.

Vietnam: All air carriers are overbooked, transit times are running 7 – 10 days to US gateways and rates remain unchanged although at high levels.

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