Peak season ahead on air freight from Asia

September, 27 2016

This year’s ”Peak Season” ahead of Christmas and New Year already starts to affect the air freight market on the lanes from especially Asia, and historically this situation is known to cause capacity gridlocks.

There is a sudden heavy increase of demand for air cargo space out of Asia into both Europe and the US. The market shows growing pressure on the airfreight capacity throughout major Asian airports to Europe and North America. Consequently, the tightening capacity could cause general rate increases and Peak Season Surcharge (PSS).

It is a question whether the Hanjin situation on the ocean freight market will pressure the air freight capacity, if new production orders are to replace the current which are on board the Hanjin ships, or whether there will be a solution in the near future to the Hanjin situation.

The Chinese National Day on 1 October and the following “Golden week” of holidays, where offices in China will be closed, is adding pressure to the situation.

As always, we strive to identify solutions in order to minimize delays and avoid extra cost for our customers. Unfortunately, a possible Peak Season Surcharge (PSS) varies depending on airline, destination, and time frame. Delays and longer lead-times may occur. Geodis will continue to monitor the situation, rates and capacity for new developments.

You are more than welcome to address any concerns or queries to your local contact person or GEODIS office.
Reach GEODIS offices in Copenhagen and Vejle:

GEODIS in Copenhagen: +45 3699 8000
GEODIS in Vejle: +45 3699 8700



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