Asian air cargo season slow to take off this year: Trans Global Logistics

CHINA'S lack of export incentives, early shipping to avoid expected US labour trouble, perceived cargo congestion and negative American economic news combined to contribute to a slow takeoff for this year's Asian airfreight season, according to Trans Global Logistics, reported Hong Kong's Circuits Assembly, the journal of the electronics assembly industry.

Trans Global president Robert Mooney said there has been enough capacity to meet demand, and transit times have been consistent with non-peak periods. But fuel surcharges, he said, remain high and are likely to rise again.

Korea and Thailand have seen export volumes fall because of the rising value of their local currencies, the magazine said. In north Asia, demand for space was down, but carriers in Taiwan and Hong Kong have begun imposing rate increases.

In India, there is sufficient space to meet demand. Rates were stable and transit times are largely consistent except for Europe. Importers were also warned to be wary about the political situation in Pakistan.

In southeast Asia, most markets have adequate space to meet demand, although Vietnam and Malaysia have reported much tighter market conditions. All markets in this region must contend with slightly longer transit times through regional hubs, according to Trans Global Logistics.