Date: Aug 28 2017
Title: Air Freight Market Update Report for Week 35


Demand for airfreight space out of Greater China gateways eased a bit last week although transit hubs in TPE and ICN report strong cargo volumes. Southeast Asia origins continue to experience strong export airfreight demand. Overall demand is expected to build through the end of September.  Booking cargo in advance is highly recommended.

Note that air freight operations in Xiamen will be impacted by the BRICS summit scheduled for September.

Following are highlights from around our Asian network.

Bangladesh: There is approximately 2,000 to 3,000 tons of backlogged air freight cargo at DAC. Airlines require one week advance booking. Much of the backlog is being caused by cargo screening requirements that have not been fully implemented at the airport. Consequently air freight is being converted to sea/air via CMB. 

Bangladesh: DAC airport authority continues to report air freight backlogs associated with cargo screening issues. There is a steady stream of airfreight being converted to sea/air via Sri Lanka. Air carriers require ten(10) days advance booking.  Official EID holiday will be from September 1st- 3rd

China
Shanghai: Anticipated Apple iPhone 8 shipments did not materialize last week. Consequently there was adequate space to meet demand and stable rates. 
Shenzhen and Guangzhou: Many air carriers continued to operate below maximum payload because of hot weather conditions. Available space to the US is tight and advance booking is a must.
Xiamen: The city will host the ninth BRICS (Brazil, Russia, India, China and South Africa) Summit from September 3rd- 5th.  Many airlines such as ANA, CI, KA will not operate freighters out of or into Xiamen airport during the period August 31st - September 6th. During this period TGL will be trucking air freight from XMN to HKG for uplift.
Hong Kong: Demand for space eased last week and is expected to remain relatively soft for another couple of weeks prior to the end of the third quarter.

India: Major gateways report that issues with the Customs EDI system have not been resolved causing delays in processing import and export shipments. Heavy volumes of perishable cargo is impacting available space and rates in Kolkata and Mumbai. Monsoon season is slowly receding and should be over by the end of September.

Indonesia: Despite strong demand for space, there is adequate supply and no reports of backlogs.

Korea: Airlines have begun to raise airfreight rates in earnest – OZ and KE announced another round of increases in the range of 8% - 10% effective September 1st. ICN is reporting very tight space conditions because of strong volumes of transit and local cargo demand. This situation will persist since air carriers have not announced plans to add additional capacity. 

Sri Lanka: Strong volumes of transit cargo have made available space to US and European gateways tight. 

Taiwan: TPE airport is reporting cargo backlogs of approximately 125 tons, primarily driven by transit cargo from XMN. Carriers have increased rates to US and European destinations last week. Transit cargo is being delayed 6 – 7 days because of the heavy cargo backlogs. 

Thailand: Demand for space to US and European gateways remains strong, especially for weekend flights. Transit times are running longer than normal and one week advance booking is a necessity. 

Vietnam: Demand for space is still strong although down slightly from last week. Carriers are expecting a strong peak season this year.

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