Date: Sep 22 2017
Title: Air Freight Market Update Report for Week 39


There is very strong demand for space throughout the region in advance of the end of the third quarter and Autumn Festival holidays that will run from October 1 - 8 in China. Most factories in China will be closed during the holidays. Congestion at transit hubs is contributing to longer transit times to US and European gateways.

Following are highlights from around our Asian network.

Bangladesh: DAC Airport authority has yet to install new scanning equipment that meets EU mandatory requirements. Consequently cartons must be manually scanned. There is a cargo backlog of approximately 1,500 tons and airlines require five days advance booking. 

China
Shanghai: In advance of the Autumn Festival holiday space has become very tight and airfreight rates have risen sharply. Airlines require 3 – 4 days advance booking.  Cargo is generally on standby for 1 - 2 flights. 
Xiamen: Available space is very tight and advance booking is required. 
Hong Kong: Factories are rushing to move out product prior to the holidays, creating strong demand for airfreight and enabling air carriers to impose another rate increase of approximately 10%.

India
Delhi: There was a surge in demand for space last week to European gateways. Available space is very tight and airlines have again increased rates to all regions.  Some airlines are only accepting cargo on Express rates for long haul destinations.  Onward flight confirmation is delayed to 8-10 days to US gateways. 
Kolkata: Cargo space is tight and most carriers are reporting backlogs. There is a shortage of space to all regions and rates have increased approximately 15% compared to the last few weeks.  Advance booking is required. 
Bangalore: Space situation is very tight to ATL/JFK & LAX and rates remain on the high side. Carriers will only accept cargo against advance booking and is subject to onboard confirmation. 
Mumbai: Last week heavy showers caused flooding and the cancellation or diversion of flights. Many carriers are reporting cargo backlogs.  Space needs to be booked 3 – 5 days in advance in order to confirm carting. 

Indonesia: There is adequate space to meet demand; however, strong cargo flows at transit hubs are causing transit times to run longer than normal. 

Korea: Strong cargo flows transiting from China and Southeast Asia combined with heavy local demand for space has resulted in cargo backlogs of 350 – 400 tons at ICN. Rates are constantly changing and it is taking an extra 2 – 3 days to get cargo uplifted. Demand for space is expected to be strong through month end and into October.  

Sri Lanka: There is strong demand for space for local and transit cargo. 

Taiwan: Taipei airport is reporting cargo backlogs of approximately 140 tons.

Thailand: Airlines require one week advance booking and are accepting cargo bookings on Express rates. Congestion at transit hubs are causing transit times to run longer than normal. 

Vietnam: Very strong demand for space is expected to remain through the end of the year. Priority service is required in order to reserve space.

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