Issue 338, March 29, 2002
During the last 15 days, there has been an unprecedented surge in air import tonnage on the Trans-Pacific eastbound market. Major manufacturers and suppliers to the U.S. market have spiked production in an effort to bolster first quarter financial results. At the same time, the westbound air freight market is weak, resulting in carriers being forced to reduce capacity. This surge of eastbound Trans-Pacific demand, along with the reduction in capacity, has put significant pressure on the carriers to increase prices resulting in some backlog situations in major Asian air freight hubs.

We are confident that the surge in demand will not continue at the current pace beyond the first week or two of April. Of course, we do anticipate another, perhaps more sustainable, import surge toward the end of the second quarter, as well as a relatively strong surge at the end of the year. We urge our Customers to look to production forecasts and commitments as a method of ensuring protection against backlogs.

We are monitoring the situation very carefully and will continue to keep you informed via The Danzas AEI Resource newsletter.

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.