Date: Oct 24 2017
Title: Air Freight Market Update Report for Week 43

Exports out of China and Southeast Asia continue to fuel strong demand for air freight space. Rates remain high and transit times are running longer than normal for cargo moving through transit hubs.  Advance booking is strongly recommended. 

Following are highlights from around our Asian network.

Bangladesh: DAC airport is reporting cargo backlogs of approximately 2,000 to 2,500 tons. Airlines require five days advance booking.  Equipment to meet EU secondary screening requirements has been installed at the airport; however, it is waiting for a EU security team to test and certify it before becoming operational. 

Shanghai: Space to the US is tight due to strong demand and the cancellation of RU/Y* freighters.  Rates have increased approximately 20% and 4 to 5 days advance booking is strongly recommended. Shipments to European gateways are backlogged 1 to 2 flights.
Xiamen: Most carriers are reporting sufficient space to meet demand ex. XMN. However transit times are running 2 – 3 days longer than normal because of heavy traffic at transit hubs. Advance booking of 3 to 4 days is required and airlines are having trouble confirming space for second leg flights.
Hong Kong: New product launches (e.g., LG LCD TV, Apple iPhone 8, etc.) are fueling demand for air freight. Cargo capacity utilization is very high, especially to the US East Coast, and is expected to remain so into November. 

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

Korea: Strong volumes of transit cargo from China have enabled carriers to impose another round of rate increases.  Available space to US and European gateways is very tight and expected to remain so  through the end of the year.  Carriers are expected to be able to maintain high rate levels through the end of the year. 

Taiwan: There are strong cargo flows via TPE to major air freight gateways in the US, Europe and Latin America. Space is tight, cargo is backlogged by 130 tons and transit times are running longer than normal.

Sri Lanka: Transit cargo dropped sharply last week easing market conditions. Sri Lankan introduced an airline security charge for transit cargo. 

Thailand: There was a surge in demand for space last week in advance of national holidays on October 21-23. Space is fully booked into this week and airlines require one week advance booking. Transit times are running longer than normal because of congestion at transit hubs.

Vietnam: Strong demand for space is expected to persist through the end of the year. Rates have increased +10% and transit times are averaging 7 to 8 days.

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