Price Comment 27th JULY 2020
China to Europe and China to USA continue to climb in line with over-riding market sentiment indicative of a rebound in volume, with September forw ard pricing mid-value climbing 27 and 45 cents respectively along the two routes. China to Europe July 2020 MTD value settles 13 cents below its last week of trading, whilst China to USA July 2020 settles 7 cents higher, reflective of a more bullish trans-Pacific market. Europe - USA outbound continues to slowly slip, with Frankfurt to USA down 13 cents last week (although prices remain relatively high) . China to Europe Calender 2021 is priced 25 cents high on the back of an aggressive $3.50/kg offer for the full year.
curve upwards, whilst trans-Atlantic prices continue to dip. As we move further into a grey-zone where fresh demand meets changeable capacity.
We would see that this could create a bit of persistence on the carrier side of the market in holding on to spot pricing, creating a bit of instability in forecasting considering the lack of more than month-long fixed-price contracts.
Near-term volatility has created an action point for businesses wishing to hedge current spot market purchasing. Meanwhile, rising fuel prices (jet kerosene average prices are up 10.8% since last month) will potentially squeeze the margin's of passenger freighter and full freighter operators alike, until these costs are either hedged or passed on to the customer.
