Industry News Supply Chain from Asia Flooded With Cargo 11/25/2009 Imports from Asia lagged behind a year ago as companies were conservative on purchasing and placed orders much later in the season than previously. Carriers, in an effort to maintain fiscal health with declining loads, rising fuel costs, and lower rates took equipment off-line, reducing capacity by as much as 40%. Now factories have finished producing last-minute orders and have flooded the supply chain with goods that exceed the now reduced carriage capacity. Importers have been shifting some goods to airfreight. New releases from computer manufacturers coupled with this seriously increased demand and the reduction in capacity have also created serious backlogs in air space and skyrocketing rates. The backlog is acute in Hong Kong (with 2,000-5,000 tons), Shanghai with a backlog twice that size, and Northern China with a backlog stretching nearly two weeks. Rates of above $6.00 per kilogram are not being quoted.