Date: Oct 02 2017
Title: Air Freight Market Update Report for Week 40

Demand for space has been especially strong this week 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: The backlog of cargo at the airport continues to hover around 1,500 tons. Airlines require a minimum of five days advance booking.

Shanghai: There is very strong demand for space in advance of the Mid-Autumn holidays. Shipments to gateways are backlogged 1 – 2 flights to the US, Canada 2 – 3 flights and Latin America space will not be available until after the holiday (October 9th). Rates to the US have been increased 15% - 25% and by 15% to European gateways.  Most warehouses serving air freight operations are also reporting serious congestion which is causing some cargo to miss confirmed flights. 
Hong Kong: Space is very tight and rates remain high. Many carriers are reporting backlogs and it is taking at least five days to clear cargo for uplift.

Delhi: Strong cargo flows via transit hubs has led to higher rates and longer transit times. Shipments to US gateways are running 4 – 6 days longer than normal. A number of carriers are reporting backlogs of approximately 50 tons.
Kolkata: Customs is closed from 09/26 to 10/03 because of a local festival.  Airfreight rates increased 10% more than last week.
Mumbai: Cargo backlogs at the airport are persisting to US, Europe and the Middle East. BA is reporting 10 Tons; EK: 20 Tons; and QR: 15 Tons.  Not surprising, the Custom’s EDI system is slow causing a long queue of trucks carting freight to the airport.

Korea: Most carriers stopped accepting bookings for last weekend’s flights because of the strong demand for space in advance of holidays in Korea and China. Carriers are signaling another round of increases after the holidays if backlogs and demand for space persist. 

Taiwan: Taipei’s cargo backlog is holding steady at around 140 tons.

Vietnam: Strong demand for space persists. Priority service is required to secure space, and transit times are running eight days longer than normal to US and European gateways. Speculation continues to run that peak conditions will persists through year end.

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