--- title: "Market Update: November 8, 2017" description: "Air freight rates surge and space tightens severely amid product launches and seasonal e-commerce demand." language: en canonical: https://www.flex.thisisbrew.com/logistics-updates/freight-market-update-november-8-2017/ lifecycle: live --- # Market Update: November 8, 2017 ## Air Freight Market Updates: Rates Are Very High, and Space Is Extremely Tight ### Space constraints are worse than ever, and rates are still climbing Capacity issues are [extremely severe](https://theloadstar.co.uk/forwarders-shippers-caught-updraught-air-cargo-perfect-storm/). This is due to a combination of product launches -- by Apple and others -- as well as a seasonal e-commerce push and canceled flights. In short, there just isn’t enough space to fit all of the cargo being shipped.  "There is nowhere to turn," one air freight forwarder told [the Loadstar](https://theloadstar.co.uk/forwarders-shippers-caught-updraught-air-cargo-perfect-storm/), in an article about this season's "perfect storm" of high rates and space constraints. “It’s a carrier’s market. Airlines are definitely becoming more selective with what they take and accept.” In a year that has been marked by a very strong air market with consistently high rates, [the current rates are exceptionally high](https://theloadstar.co.uk/forwarders-shippers-caught-updraught-air-cargo-perfect-storm/) -- and still climbing as the winter holidays approach. "Rates are going sky high – and going up every weekend," the Loadstar source commented. Read more about the state of the air market [here](https://theloadstar.co.uk/forwarders-shippers-caught-updraught-air-cargo-perfect-storm/). #### Uplift delays out of Asia and Europe Major airports in Europe are experiencing week-long delays in uplift, notably MXP (Milano Malpensa). China gateways are also experiencing delays of 4-6 days before uplift, with the worst backlogs in South China and Hong Kong. #### Severe congestion at Heathrow [Heathrow is severely congested](https://theloadstar.co.uk/severe-cargo-congestion-heathrow-subdues-delight-record-volumes), with long lines of trucks (and reports of trucks being turned away). If you have cargo moving in or out of Heathrow, expect lengthy delays and [trucking wait fees](https://flexport.com/help/66-what-is-a-trucking-wait-fee). #### Book early, and book direct flights for urgent shipments Book your air shipments in advance -- at least 10 days before the [cargo ready date](https://www.flexport.com/help/361-what-is-the-cargo-ready-date), if possible.   For urgent shipments, you should also consider booking direct flights. It's more expensive, but direct flights will avoid potential delays at transshipment airports. ### Ocean Freight Market Updates #### The Nov. 1 GRI is not holding After a brief increase due to the Nov. 1 [GRI](https://www.flexport.com/help/21-how-does-flexport-incorporate-gri-and-pss), rates are sliding back down toward previous levels. #### Carriers are not yet announcing blank sailings Unlike in years past, [carriers have not yet announced blank sailings](https://www.joc.com/maritime-news/still-no-sign-canceled-q4-sailings-oversupplied-carriers_20171106.html) for the winter season. (They typically use [blank sailings](https://www.flexport.com/help/355-what-is-a-blank-sailing) during slack season to reduce overcapacity and keep prices up.)  #### Rates will increase in advance of Chinese New Year Starting in mid-December, we’ll see rates begin to go up in anticipation of [Chinese New Year](https://www.flexport.com/help/90-how-should-i-prepare-for-chinese-new-year-cny). This will constrain space, too. Expect more [GRI announcements](https://www.flexport.com/help/21-how-does-flexport-incorporate-gri-and-pss) for December and January. ### Other Freight Market Updates #### Congestion and chassis shortages in Savannah, Atlanta, Chicago, Elwood/Joliet - **Savannah**: Daily chassis shortages and capacity issues - **Atlanta**: Because more cargo is being railed to Atlanta to avoid the Savannah issues, we’re now seeing congestion in ATL - **Chicago**: Severe congestion and chassis shortage at CN in Chicago - **Elwood/Joliet**: Chassis shortage at BN and UP If your cargo is being routed through any of those ports / terminals, you may see [chassis split fees](https://www.flexport.com/help/56-what-is-a-chassis-split) and/or [storage fees](https://www.flexport.com/help/161-what-is-demurrage) if your trucker needs to make an extra trip to pick up a chassis.  #### Delays in Seattle The Pacific Northwest is experiencing port delays and capacity issues due to peak season -- especially SEA/TAC. #### Fuel tax increase in California As of November 1, [California has increased its diesel tax](https://www.sacbee.com/news/politics-government/capitol-alert/article147437054.html) to 36 cents per gallon (this is a 20-cent increase). We’re seeing higher fuel surcharges from trucking providers as a result. #### FTL rates in California are up The eastbound FTL market in California is very tight. Rates are up 20% or more. --- *This is a markdown version of [https://www.flex.thisisbrew.com/logistics-updates/freight-market-update-november-8-2017/](https://www.flex.thisisbrew.com/logistics-updates/freight-market-update-november-8-2017/) for AI/LLM consumption.*