Date: Aug 14 2017
Title: Air Freight Market Update Report for Week 33


Airfreight volumes from Asian gateways remain relatively strong. Shanghai and Hong Kong are benefiting from demand from electronics shippers associated with new product launches. Demand for space out of Indian Subcontinent and Southeast Asian gateways remain strong although there appears to be adequate space to meet demand. Transit times continue to be impaired because of lingering congestion at some transit hubs. Booking cargo in advance is highly recommended.

Following are highlights from around our Asian network.

Bangladesh: Air freight backlogs in the range of 2,000 – 3,000 tons persist and available space remains tight. Airlines require advance booking of one week.

China
Shanghai: There is adequate space to meet demand and rates are stable. There will be a surge in demand this week as Apple resumes new product shipping.
Shenzhen and Guangzhou: Although market conditions are normal for this time of year, space is a little tight because some carriers have reduced their payloads in response to hot weather conditions. Advance booking is required.
Hong Kong: Air freight flows though HKG remain strong for both local and transit cargo. Rates remain unchanged from last week and shippers are suggested to book cargo 2 – 3 days in advance. 

India:
Delhi:  There was a surge in demand for air freight space last week causing cargo backlogs and transit delays. Carriers capitalized on the situation by imposing rate increases.  Customs’ EDI system is still not working properly causing processing delays for both export and imports. 
Kolkata: There is strong demand for space from perishable shippers causing tight market conditions and enabling carriers to increase rates. Carriers will only accept cargo against advance booking and subject to onboard confirmation
Bangalore: Available space remains tight and rates are on the high side. Carriers will only accept cargo against advance booking and subject to onboard confirmation.
Mumbai: There are no reports of backlogs although airlines will only accept cargo against confirmed onward booking.  There is no improvement in Customs’ EDI system.
Chennai: Market conditions are normal in terms of sufficient space to meet demand. Most carriers continue to charge Express rates because of delays at transit hubs.

Indonesia: Demand for space is very strong. Space to all US gateways is fully booked through August 20th. Rates are high and carriers have imposed no-show and cancellation fees. Advance booking is required. 

Korea: Local demand for space to US gateways is soft following the summer vacation season. Transit cargo, particularly from China, is gaining strength KE announced a rate increase effective August 21st and OZ is expected to follow suit. 

Sri Lanka: Air freight volumes picked up last week because of local demand and transit cargo from Bangladesh. Regardless there is no congestion and sufficient space to meet demand. 

Taiwan: Cargo backlogs are estimated to be 130 tons. Space is tight and carriers increased airfreight rates to US and European gateways. Shippers are recommended to book cargo 3 days in advance of desired departure date. 

Thailand: Demand for space to US and European gateways remains very strong. Available space is very tight, transit times are running longer than normal and one week advance booking is required. 

Vietnam: There is sufficient space in SGN and HAN to meet demand although lingering congestion at transit hubs is perpetuating delays to onward destinations.  

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