Date: Aug 07 2017
Title: Air Freight Market Update Report for Week 32

Airfreight volumes from Asian gateways remain persistently strong, especially from Hong Kong, Southeast Asia and most Indian gateways. Rate levels remain high where there is strong demand and transit times are running longer than normal. Booking cargo in advance is a necessity at these gateways.

According to Wolfe Research, July combined export air freight volumes for Hong Kong and Shanghai are 17.5% greater than the same month a year ago. July was the sixth straight month of double digit airfreight volume growth out of China and airfreight volumes are seeing their best and most sustained volume growth since 2010.

Following are highlights from around our Asian network.

Bangladesh: There is approximately 2,000 to 3,000 tons of cargo backlogged at the DAC airport. Carriers require 4 to 5 days advance booking. The situation is expected to persist until the middle of September when new cargo screening devices are installed. 

Shanghai: There is adequate space to meet demand to US gateways. Rates are stable and carriers are offering spot rates for large, dense cargo.  Direct service to Canada is backlogged one to two flights.  Xiamen: Carriers have sufficient space to meet demand to US and European gateways. However space is tight to some Southeast Asian gateways because of summer vacation travel which impinges on cargo allocations.
Hong Kong: Demand for space remains strong, especially to the US West Coast. Advance booking of two to three days is highly recommended. 

India: Most gateways continue to grapple with delays caused by Customs’ EDI system.
Delhi:  Airlines have sufficient space to meet demand; however, advance booking is required and subject to onboard confirmation.  Cargo is being uplifted after 12 hours with onward delays of 1 -2 days to all US European and Far East gateways.  
Kolkata: Available space remains tight and rates are holding firm on the high side. 
Bangalore: Space situation is tight and rates are still bit high. 
Mumbai: Heavy rains have begun to abate as the Monsoon season is coming to an end.
Chennai: Carriers are maintaining higher rate levels because of strong demand and 4 to 5 day delays encountered at transit hubs.  

Indonesia: There are heavy volumes of air freight booked through the end of August, consequently space is very tight. Carriers are not quoting spot rates and only accepting cargo at Express rates.

Korea: Following the end of the traditional summer vacation period, local demand for space is soft and transit cargo volumes are light. Rates are stable and any surge in demand for space is not expected to occur until the latter half of the month.

Pakistan: Available space to US gateways is very tight. 

Taiwan: Demand for space to US and European gateways is very strong which has enabled carriers raise rates.   TPE’s cargo backlog has been worked down to 200 tons. Most of the backlog is associated with cargo originating from Xiamen which often sits at TPE for 6 – 7 days before onforwarding. Advance booking of three days is highly recommended. 

Thailand: Strong demand for cargo space to US and European gateways continued last week. Airlines expect demand to carry forward next week.  Transit times remain longer than normal and advance booking of at least one week is required.

Vietnam: Market conditions persist - cargo backlogs in SGN, HAN and transit hubs. All airlines are overbooked, space is tight and rates are high.  Transit times are running 7 days longer to LAX and 9 days to ORD and JFK. Airlines request 10 days advance booking. 

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