Cathay Pacific: Good peak season for Asia Pacific - not so, says FIS
HONG KONG's Cathay Pacific Cargo has reported a positive peak season, based on its performance and its role in transporting freight related to consumer-led holidays such as Singles' Day, Thanksgiving and Christmas
HONG KONG's Cathay Pacific Cargo has reported a positive peak season, based on its performance and its role in transporting freight related to consumer-led holidays such as Singles' Day, Thanksgiving and Christmas.
But derivatives broker Freight Investor Services (FIS) does not confirm this positive outlook, reported London's Air Cargo News.
'Any hope of transpacific price recovery in 2019 has well and truly dissolved,' said an FIS spokesman.
Said Cathay Cargo: 'While still below what it was the same time last year, Cathay Pacific Cargo's performance has picked up since September and the last quarter of the year looks promising through October and November,' said a company spokesman.
The company 'appeared to shrug off the impact of the trade war in an extraordinary show of Chinese consumer power', as well as possible 'positive inklings of a phase one trade deal between China and the US', he said.
'We are monitoring the movement of some production centres in the region and will be responsive to resultant changes in trade flows,' he said.
But Freight Investor Services said: 'Caught short on last week's information, the general consensus that Q4 2019 is a damp squib holds true for at least one major trade route - the impact of the trade war has restrained transpacific air freight, and shipping is poignantly demonstrated by the pre-mature decline of Asia-US prices.
In contrast to Cathay Pacific Cargo's statement, the FIS report implies that as a result of the ongoing US-China trade war, the transpacific region is suffering in Q4 - despite the consumer-led holidays that drive volumes during peak season.