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Air freight demand from China slows down, but continues to be strong

DESPITE air freight demand slowing over the past couple of weeks, forwarders and airlines are still reporting a good deal of market activity from China in the run up to Christmas.

"The 'peak' has passed in most places in China, but the pressure is still on in Hong Kong and we expect it to remain so until at least mid-December," said Air France-KLM Cargo vice president Christophe Boucher, reported Lloyd's Loading List.

The 2015 peak is similar to 2014's "in terms of length and intensity even if, from a rate perspective, we started from a lower base. And while it was nothing compared to the peaks of a few years ago, demand is sufficient to push up rates."

Lufthansa Cargo saw strong demand through the end of November and into early December. "This year, the peak season started early and it came in different waves. We have decent demand and expect a 'mini peak' closer to Christmas," said the carrier's director for North and Central China, Christian Haug.

For Cargolux, demand had been strongest in November. "It has slowed down since the first week of December, but did not take a deep dive. Rather, there is still demand for capacity on some trade lanes; it's just not as strong as in November," said Asia-Pacific vice president Kevin Shek.

"High season demand has been mainly driven by new products, such as from Apple, which our Zhengzhou flights benefited from. There have also been some other Apple products going out of southern China as well as goods such as toys and scooters."

He said another factor was probably the low stock levels of Asian-origin goods in Europe and the US, which were in need of replenishment.

"In 2015, the whole year has been flat. It's not that cargo volume has dropped, but that the increase in capacity everywhere has had a diluting effect overall," said Mr Shek.

Panalpina global air freight chief Lucas Kuehner said the Swiss forwarder had seen very strong demand in the past couple of weeks, "which on some occasions has been even stronger than last year, especially on the Asia-Europe lane".

He added: "So the peak season has not yet passed, but since this week we are seeing volumes coming down from the highest levels, a trend we expect to accelerate in the time running up to Christmas."

Australian forwarders make good progress towards 100pc screening

AUSTRALIA's Department of Infrastructure and Regional Development says in the agency's latest air cargo security newsletter that Australia has made good progress in meeting new US security rules.

Air cargo agents are moving in rapidly on 100 per cent piece-level screening targets for US-bound air cargo, after Enhanced Air Cargo Examination (EACE) started at 23 facilities across Australia, reports London's Air Cargo News.

Six regulated air cargo agents, including one cargo terminal operator have been approved to prepare cargo to piece-level standards under EACE, it says.

The Office of Transport Security recently extended its engagement to 34 businesses across Australia, including cargo terminal operators and general and perishable freight forwarders, to guide these businesses through the technology, human factors and security standards for EACE.

The aim is to support industry in progressing toward 100 per cent piece-level screening for US-bound air exports by July 2017.