Transpacific gets boost prices speedily react to reduced capacity
TRANSPACIFIC gets a much-needed boost as open market physical prices quickly reacted to reduced capacity caused by the pandemic air travel suspension
TRANSPACIFIC gets a much-needed boost as open market physical prices quickly reacted to reduced capacity caused by the pandemic air travel suspension.
Previously, United and American Airlines cancelled their Hong Kong schedules following Covid-19 tests for crews.
Currently, the drive remains in a downward trend but in a bit closer to older norms. The questionable future of the market has started to impact the time frames for BSA or long-term contract renewals.
It's true that the future is unpredictable, however, it's possible for them to implement contracts to help provide regular pricing while still absorbing the real fundamental impacts of price volatility.
The two core routes conflict as a price support for China to US is pushing the curve upwards on the back of revised offer prices.
Air FFA offers for China to US now range from a high of US$5/kg in July 2020, to $4/kg through August to September.
The inclination of reducing Air FFA prices continues, but the sudden reduction of trans-Pacific capacity is pushing the mid-values up around $0.30/kg.
Meanwhile, China to Europe continues to accelerate, with minor corrections on the July 2020 Air FFA prices, down $0.07/kg only.