There is a heavy increase in demand for air cargo space out of Asia into both Europe and the U.S. in recent weeks. This increase in demand is said to be due to a number of factors including the recent improvements in the U.S. economy, Europe exiting their recession and, since late summer, an improvement in China's manufacturing sectors leading to increased exports.
Other sources report growing backlogs throughout major Asian airports to North America, indicating tightening capacity and probable rate increases. Additional contributing factors include seasonal volumes, announcements by the large electronic companies on the release of their latest products and reports of airline capacity cuts.
The market for spot rates out of China to North America and Europe is up by 15 percent to 25 percent since early this month. Demand for airlift capacity could be greater in the fourth quarter because the late Thanksgiving holiday in the United States means retailers will have six fewer shopping days before Christmas and will need a faster transport option for replenishment of popular, high-value goods.
It should also be noted that the Chinese New Year is early in 2014 (January 31); demand leading up the holiday is historically forecasted to be higher during this period and with the upturn in Chinese manufacturing and exports, we can expect a bigger capacity crunch than we have experienced in recent years. Please contact your local Geodis Wilson representative for the latest updates on the current situation.
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