Trading Update
From China to Europe, August trades between $2.50 and $2.55, with spreads narrowing due to the flat market across July. China to US softens slightly, falling in line with below-projected spot rates.
Current volumes range between 10 to 100 tons per month.
Market Comment
Both the China to Europe and US lanes follow a fairly flat trajectory, bar minor inter-week volatility. This is highly reflective of a lull in airfreight supply/demand in line with the 'height' of the summer slack season.
However, origin-destination specific routes have been reacting violently to immediate and sudden e-commerce demands, which Hong Kong to London climbing 15.6% in two weeks. This reaction does not bode well for the impacts of Brexit confusion likely to occur at the start of Q4.
| Basket | USD/KG | CHANGE | CHANGE % | MTD |
| CHINA - EUR | 2.56 | 0.00 | 0.00% | 2.56 |
| CHINA - USA | 3.27 | -0.02 | -0.61% | 3.29 |
| Blended | USD/KG | CHANGE | CHANGE % | MTD |
| PVG/EUR | 2.47 | 0.05 | 2.07% | 2.43 |
| HKG/EUR | 2.65 | -0.06 | -2.21% | 2.70 |
| PVG/US | 3.25 | -0.03 | -0.91% | 3.26 |
| HKG/US | 3.29 | -0.01 | -0.30% | 3.33 |
The Freight Investor Services air cargo market report combines data from The Air Cargo (TAC) Index and perspectives from our wide array of clients to provide an view on the historical, present and future air cargo market. Constantly under review, market players can use the report to judge and assess air freight market volatility. The Forward Curve is an amalgamation of previous and prospective market data, weighted by live market information provided by our wide array of corporate clients. When trading an air cargo derivative, you can use the forward curve in conjuction with your own propriortory data to take a view as to where you think the market will turn next.
'Airfreight routes (AGRs)' provide us with tradeable routes in conjunction with baskets, by maximising volumes along regional tradelanes. AGRs calculate the average of several correlating arrival points noted by their airport codes
| Airfreight Route (AR) | Description | PREVIOUS | USD/KG | CHANGE |
| AGR 1 | HKG to LAX & ORD & JFK | 3.24 | 3.23 | -0.31% |
| AGR 2 | HKG to LHR & FRA & AMS | 2.79 | 2.96 | 6.09% |
| AGR 3 | HKG to SIN & BKK & PVG | 1.16 | 1.18 | 1.72% |
| AGR 4 | PVG to AMS & FRA & LHR | 2.37 | 2.47 | 4.22% |
Chine - Europe Forward Curve - Indicative Update (USD/Kg)
| BID | ASK | VALUE | CHANGE | |
| Jul-19 | 2.50 | 2.75 | 2.63 | 0.00 |
| Aug-19 | 2.50 | 2.55 | 2.65 | -0.10 |
| Sep-19 | 2.45 | 2.60 | 2.52 | 0.00 |
| Q4 19 | 3.03 | 3.13 | 3.08 | 0.00 |
| Cal - 19 | 3.04 | 3.14 | 3.09 | 0.00 |
| Cal - 20 | 3.44 | 3.54 | 3.49 | 0.00 |
Chine - USA Forward Curve - Indicative Update (USD/Kg)
| BID | ASK | VALUE | CHANGE | |
| Jul-19 | 3.25 | 3.35 | 3.30 | -0.10 |
| Aug-19 | 3.26 | 3.36 | 3.31 | 0.00 |
| Sep-19 | 3.52 | 3.62 | 3.57 | 0.00 |
| Q4 19 | 4.13 | 4.23 | 4.18 | 0.00 |
| Cal - 19 | 3.91 | 4.01 | 3.96 | 0.00 |
| Cal - 20 | 4.12 | 4.22 | 4.17 | 0.00 |
