---
title: "Market Update: October 19, 2017"
description: "Ocean peak season ends post-Golden Week as air rates surge toward a November super peak tied to the iPhone launch out of China."
language: en
canonical: https://www.flexport.com/global-logistics-update/freight-market-update-october-19-2017/
lifecycle: live
author:
  - "Flexport Editorial"
publishedAt: 2017-10-18T00:00:00.000Z
dateModified: 2026-07-31T03:21:50Z
readingTimeMinutes: 2
topics:
  - "Capacity & Rates"
  - "Peak Season"
  - "Transpacific"
  - "Greater China"
  - "Ocean Freight"
  - "Air Freight"
---

# Market Update: October 19, 2017

## Ocean Freight Market Updates

**Ocean’s peak season is over**

We’re past [Golden Week](https://www.flexport.com/help/golden-week-china-impact/), and we don’t expect to see any dramatic increases in ocean freight rates until the pre–Chinese New Year crunch.  

## Air Freight Market Updates

![Air trade lane table: Hong Kong-US and Asia-US rates up on Golden Week backlogs, Asia-Europe and US exports steady](https://cdn.sanity.io/images/ynj1yl20/development/f57657f93809d74c52dcde687228d99cd581928f-886x460.png)

**We’re in peak, but rates will rise further**

Air rates are high -- as they have been for months -- and we expect them to rise further in the coming weeks. There will be a “super-peak” in November, with higher rates and even tighter capacity.  

**The iPhone launch will affect rates and space out of China**

The [November launch of the iPhone](https://venturebeat.com/2017/09/13/how-the-new-iphone-could-drive-up-the-cost-of-everything/) will drive up rates further, and will constrain space even more. The impact may continue to be felt as late as January.  

**Another fuel surcharge increase for cargo out of Hong Kong**

Air carriers have announced another fuel surcharge increase for cargo ex-Hong Kong. Beginning November 1, the fuel surcharge will be $0.16/kg, up from $0.09/kg.  

## Other Freight Market Updates

**FTL rates are high in Northern California**

Northern California FTL rates are up due to region’s wildfires. 

**Fuel tax increase in California**

As of November 1, California will increase its diesel tax to 36 cents per gallon (this is a 20-cent increase). We expect FTL and LTL providers to increase their rates as a result, and we may also see an increased fuel surcharge rate for California drayage providers.

---

*This is a markdown version of [https://www.flexport.com/global-logistics-update/freight-market-update-october-19-2017/](https://www.flexport.com/global-logistics-update/freight-market-update-october-19-2017/) for AI/LLM consumption.*