|AIR FREIGHT PRICING TREND CHINA TO EUROPE, CHINA TO US YOY
|This crisis has of course a strong impact on pricing to/from China, from Hong Kong and to/from USA/Europe, HERE.
Source: The TAC Index, published 25 May 2020
Shipper and forwarders planning their container shipment bookings for the third quarter can expect a new wave of blanking announcements over the next two-to-three weeks. While the second quarter of the year was characterised by a wave of cancelled sailings, there have, so far, been relatively few announced for the third quarter, according to eeSea data.
During July, there are some 235 headhaul sailings scheduled for the Asia-North Europe and transpacific trades, with just five blanked so far. In comparison, May saw 245 sailings and 51 cancellations, and June saw 223 sailings and 28 blanks. However, SeaIntelligence Consulting founder Lars Jensen told a TOC Events webinar this morning that shippers could expect more blankings for July unveiled soon. “July is now just five weeks away and that’s typically when the first bookings for those sailings would be made, so I would expect carriers to announce blank sailings in the next two or three weeks – not necessarily for all of the third quarter, but certainly July.”
Last week saw some sailings on the transpacific trade "unblanked” however, Mr Jensen cautioned: “We are beginning to see unblanking, but I do not believe this is sign that demand is returning. What this is a sign of is that the enormous amount of capacity withdrawals was slightly overdone It is not a sign of strong demand, but rather shows that the carriers would rather blank too much than too little.” He explained that blank sailings had proved to be carriers’ only way of maintaining revenue and that, should the industry suffer a freight rate drop in line with the demand decline, the financial disaster would be magnified.
Source, The Loadstar, 26 May
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GEODIS Management Team