Sudden Surge in Asia Freight

(Cargonews Asia – Ian Putzger)

Forwarders scramble for space as rates go up

Airlines’ endeavours to push their yields upwards have received a shot in the arm from a surge in demand for lift out of Asia that has forwarders scrambling for capacity.

In recent years, the peak season surge out of Asia to North America and Europe was a non-event, leaving carriers frustrated over the absence of the year’s most lucrative period when bottlenecks traditionally push up pricing. The slump that hit the industry in the fourth quarter of 2008 rendered many charter arrangements that forwarders had put into place in anticipation of tight demand futile, so this year most refrained from lining up charter freighter capacity.

As a result, the rise in volume, that commenced on some sectors as early as August, has hit forwarders unprepared.

Airlines and forwarders reported strengthening of traffic in much of the region – from Japan to Korea, China and Taiwan, but the strongest spike appears to have occurred out of China. Read more here.