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Asia Faces Major Airfreight Capacity Shortages

Asia Faces Major Airfreight Capacity Shortages - Route Newsletter: September 2024

The peak season for airfreight started in September, and it has already been challenging to secure capacity. Demand from Asia is very strong due to the surge in e-commerce goods, pushing capacity limits. People are still purchasing goods, and due to heavy inflation in many countries, they are buying cheaper items through e-commerce sites. Apple has moved its manufacturing back to China and is set to roll out its iPhone 16, which will further add to the capacity constraints.

The increase in demand is causing congestion at transit hubs in Korea, Taiwan, Japan, and the Philippines. Singapore’s space challenges have also been heightened by the fact that some airlines no longer fly over Iranian airspace for long-haul routes.

Analysts expect that rates from South China to North America will rise this month. We recommend building in additional lead time if you have an urgent shipment to move by air and starting to plan with Universal as early as possible.

For more information, please contact Debbie McGuire, Director of Freight Solutions.

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