FlyingTypers’
“voxpop” of Asia’s leading
air freight forwarding executives finds optimism
for 2017 across the industry…
Leading air freight forwarders predict a strong
start to next year after an encouraging end
to 2016. But much depends on continuing strong
growth on Asian lanes.
Lucas Kuehner,
global head of Air Freight at Panalpina, said
all the air freight forwarding lanes that
had seen the most growth last year were Asia-related.
“We have
had significant growth from Asia to Europe,
Asia to the Middle East, Asia to Latin America,
and also within Asia,” he told FlyingTypers.
“We expect this to continue in December,
albeit at a slower pace and with more movement
in comparison on the Europe to Asia trade
lane.”
He also said
2016’s peak season had been significantly
stronger than in 2015. “In fact, it
was the strongest we have seen since the financial
crisis,” he added. “We saw the
traditional Thanksgiving and Christmas rush
in full swing. After a little dip a couple
of weeks ago, demand has picked up again,
especially on the Asia to Europe trade lane.
“There
were several root causes for this peak season,
from a year-end rush to last-minute ocean
freight conversions and new cargo flows from
e-commerce.
“The
peak ex-Asia lane has been extremely strong
from China and Hong Kong, but also from the
traditional airline hubs Korea and Taiwan
as well as Vietnam, and to a lesser extent
from elsewhere in Asia.”
Michael Yip,
CEVA Logistics’ SVP Freight Management
for South East Asia, also reported that the
2016 peak season in Asia had been stronger
than in previous years, mainly due to cuts
in carrier capacity, but also because of market
factors including “new product launches
from the technology sector, heavy movement
of fashion goods, and to some extent mode
shift from Ocean to Air as a result of Hanjin
Shipping’s bankruptcy.”
Li Wenjun,
SVP, Air Freight, Asia Pacific and Head of
Air Freight, China, DHL Global Forwarding,
told FlyingTypers that high-tech
products and ecommerce shipments drove demand
in Q4, especially on Europe-Asia and Asia-Europe
lanes. While electronic shipments were expected
to slow in the second half of December, there
was “huge demand for e-commerce shipments,
which will continue to grow.”
He added: “Different types of shipments
drive our trade from Europe to Asia while
high tech and Fashion & Apparel shipments
are the key drivers for our trade from Asia
to Europe.”
In contrast
to previous peak seasons, imports to Asia
have also been a key growth market. “We
witnessed a new peak season developing from
Europe to Asia,” said Kuehner. “There
was significantly higher demand on this route
in December than earlier in the year.”
Looking ahead,
Wenjun said the early Chinese New Year would
see higher levels of demand continue in January,
but would not result in a major overall boost
to Q1. “We do anticipate the demand
to continue till Chinese New Year, so the
volume in January should be higher than usual,”
he explained. “However, with February
being a shorter month in addition to the Chinese
New Year, there will be a lower production
volume, especially out of Greater China. In
addition, we expect the airfreight market
baseline rates ex-Asia Pacific to increase
in 2017, compared to 2016.”
Yip argued
that although the gains of late-2016 were
largely seasonal, the demand pick-up could
be prolonged due to the early Chinese New
Year holidays in 2017, which fall late this
month. This would likely prompt a surge in
January demand ahead of factory closures.
“Thereafter we expect the usual drop,
following a pattern similar to post-CNY this
year,” he added.
Kuehner said
low inventory levels that had to be replenished
drove the Q4 cargo surge, amplified by a stronger
than expected holiday peak season driven by
consumer goods. “Electronic launches
played a role, but maybe not as much as in
previous years,” he added.
“January
and February are traditionally slow months.
It’s too early to say if the current
peak will extend into the first quarter.
“However,
we are optimistic and expect better market
growth in the first half of 2017 versus 2016.”
SkyKing |