Date: Nov 14 2017
Title: Air Freight Market Update Report for Week 46

Demand for space remains very strong across the entire region and transit hubs are reporting serious cargo backlogs. Rates continue to rise and transit times are running longer than normal for cargo moving through transit hubs.  Many airlines will only accept cargo bookings on Express service. These conditions are anticipated to persist through Thanksgiving. Advance booking is strongly recommended. 

Following are highlights from around our Asian network.

Bangladesh: The airport continues to report a large volume of backlogged cargo.  Available space is very tight because of strong demand and allocation reductions by major carriers such as QR, EY, EK, BA, KL. 

Shanghai: Demand for space to all regions is very strong to all regions. Cargo backlogs are ranging between 2 – 3 flights. Air freight rates to the US increased approximately 5% last week and space must be confirmed on a case-by-case basis.
Hong Kong: There has been no abatement in demand for space. Airlines are dealing with overbooked flights and backlogs. Air freight rates went up another 20% last week and “normal” service transit times are running 5+ days longer than normal. Most cargo is being booked on Premium service in order to secure space and minimize transit delays. Demand for space is anticipated to increase in the coming weeks. 

India: Major air freight gateways are reporting that demand for space is very strong and some airlines, such as VS, BA, AF, KLM, have imposed embargoes on new bookings to the US.  Most airlines will only accept cargo greater than 500 kgs on Express mode.  Cargo moving on “normal” service must be booked 10 - 15 days in advance in order to secure onward confirmation from transit hubs. 

Indonesia: Although there is very strong demand for space to US and European gateways, there are no reports of congestion ex CGK. In order to secure space, air carriers are demanding Express rates. Advance booking of 1 to 2 weeks is important in order to confirm onward space bookings at transit hubs. 

Korea: Market conditions are very challenging because of strong demand and the unwillingness of air carriers to add capacity. Consequently rates to US gateways are up 12% to 15%. Carriers expect demand to remain strong through Thanksgiving and are signaling another round of increase for next week.

Taiwan: There is high demand for space to all regions and transit times are running longer than normal. TPE airport is running a backlog of 130 tons.

Thailand: Available space to US and European gateways remains tight. Some airlines such as QF & CI are not accepting bookings to US gateways (especially East coast) until next week because of congestion at transit hubs. Airlines will only accept bookings upon approval by their head offices. Transit times remain longer than normal and one week advance booking is required.

Vietnam: Market demand is unchanged from last week - Hanoi and Ho Chi Minh are each reporting cargo backlogs of approximately 400 tons. Air freight rates are averaging 30% greater than a month ago and are 50% greater to the US East Coast. Transit times to North American gateways are running more than 10 days longer than normal and 7 – 8 days longer to European gateways. These conditions are anticipated to persist through year end.

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