Apr 10, 2020 12:29 PM

he latest figures from the TAC index show that Shanghai average prices to Europe last week rose a whopping 42.3% to $ 7.33 per kg.

This is a new record for the index, which was released in March 2015.
There was also a 27.4% week-to-week increase to $ 5.11 per kg in services from Hong Kong to Europe, also a record trade route for the index.

However, the situation of China's services to the US. USA He began to show signs of relaxation.

The TAC index figures for Shanghai to North America fell 3.5% week-to-week to $ 6.36 per kg, although this remains the second highest amount recorded by the index.

Hong Kong to North America also showed signs of easing as rates increased 6% to $ 5.30 per kg, representing the smallest weekly percentage increase since early March.

However, this remains one of the highest levels on record for the lane.

Rates also fell on the westbound liner: a 18.9% drop to $ 3.39 per kg in Frankfurt to North America. Chicago to Europe registered an increase of 15.9% to $ 2.70 per kg.

High fares occur when air cargo capacity has been reduced by 35% globally as passenger airlines significantly reduce services.

Peter Stallion, a derivatives broker at Freight Investor Services, suggested that demand for medical equipment and a shortage of container capacity kept rates high outside of the Asia Pacific.

"The volatility swing of the weekly basket tells an interesting story as the avalanche of medical equipment and pharmaceuticals in Europe raises the lane price to levels never seen before," he said.

"This is in contrast to the United States, which at least for the moment, has seen a freeze on its price gains. Both lanes have, of course, very high prices.

"It would also appear that trafficking from Europe to the US. USA It has started to fail from a price point of view as most major lanes (including Frankfurt and London to the US) see a drop in fares.

"The overall picture is still offset by APAC's strong air freight prices as container capacity is further restricted, forcing urgent freight to air freight."

Freight Forwarder Agility said there was continued pressure on China in and out, but with some signs of recovery.

Source: DGCI