|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. For more information on the Air Freight Pricing on these trades, please click HERE.
Source: The TAC Index, published 29 June 202
Asia-Europe spot prices climbed again last week as demand in Europe continues to recover in a container shipping market with still constrained capacity, taking average global prices to their highest level since 2015, Drewry analysis reveals.
On the transpacific trade, after several weeks of gains, Shanghai to Los Angeles spot rates fell 9%, although they remain 68% higher than a year ago. And after strong gains last week, Shanghai to New York average spot rates were flat last week, 30% higher than a year ago.
Freight rates on Rotterdam to Shanghai nudged up by 1%. However, rates on transatlantic routes declined last week, with prices from Rotterdam to New York dwindling 5% for a 40ft box. Similarly, New York to Rotterdam average prices dropped 2% per 40ft container.
COVID-19 takes its toll on charter rates: Time charter rates for container vessels have been significantly hit by the COVID-19 pandemic, having dropped by up to 50% depending on vessel sizes since the epidemic expanded globally, according to the Alphaliner.
One the Air Freight side, Global air cargo capacity declined 26% last week compared to last year; North America – Latin America decreases by only 7%; Transpacific Eastbound capacity grows 2% compared to last year; Europe – Asia capacity declines by 23%, based on the information published by Seabury. Europe – Latin America capacity is still 75% lower than last year.
Belly and freighter capacity shows almost no change compared to last week.
Airline freighters added the most capacity on a week-onr-week basis, with +6k tonnes; while widebody belly cargo capacity increased +3k tonnes.
Passenger freighters out of China have decreased 30% since mid-May while freighter capacity has been stable, compared against mid-May it shows a slight decline of 5%; Passenger freighter capacity decline is concentrated in PVG, PEK and CAN.
USA is the country with the highest absolute decrease in year-over-year capacity while ANC is the airport with the highest increase in capacity, other large airports, such as, JFK, LAX and IAH have seen strong decreases in capacity.
Over 70% of air trade from Asia Pacific to USA now originates from China. Japan is one of the countries with the strongest decline, with almost 14 p.p. lost in market share.
Source: Alphaliner, Drewry and Lloyd Loading List, Seabury and The Tac Ondex, 29 June 2020
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