Asia Market Outlook – Airfreight

Space has been at a premium over recent months, which has resulted in a sharp increase in costs. Usually, we would expect these levels to drop after a reduction in volume following Chinese New Year.
However, as reported in ‘The Loadstar’, there is a swell of opinion that some carriers are starting to influence the market by not providing sufficient capacity, and cancelling scheduled cargo flights to keep demand high prior to contract negotiations.

A strong US economy drawing capacity, manufacturing delays, difficultly in charter operators gaining flight permits in China, security restrictions, new electronic product launches and the growth in e-commerce, all contributed a sharp increase in rates during the second half of 2017.
At this stage, reports are suggesting that the unsettled situation may continue through the next few months and contract negotiations are seeing higher levels proposed by carriers off the back of a buoyant 2017 year end.
As always, the Uniserve team will be monitoring the situation closely and we will keep your aware of any developments.
For further information on the above, or to find out more about how Uniserve can add leverage to your supply chain, then please contact your local Uniserve representative, or email info@ugroup.co.uk.
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