#INTHEAIREVERYWHERE |
Vol. 17 No. 8 | Friday
February 9, 2018 |
Factory Signals Mixed Ahead of CNY |
Ahead of the Chinese
New Year (CNY) factory shutdowns, market signals are rather mixed—and
not just for air cargo. Where Art Thou Rates? Digital forwarder Flexport
said air freight rates on key lanes were currently stable, with no significant
gains apparent from China gateways, but added that the situation could
change this week. Rates Switchback
But analysts are not united when it comes to reading the current market.
The TAC Index covering average prices per kilo from Shanghai PVG to Europe
fell 9 percent to CNY17.40 (USD2.76) on February 5 compared to a week
earlier, for example, while average prices from Hong Kong to Europe and
the U.S. on February 5 were 3.5 percent and 3.83 percent lower, respectively,
than a week before. Looking Beyond CNY It will become clearer
next week precisely why pre-CNY freight markets have so far been relatively
flaccid, at least compared to expectations, but the outlook for the rest
of the year is rosy. Certainly, unless this week’s stock market
declines are harbingers of an economic downturn, there is also little
on the global economic horizon to suggest anything but a prosperous year
for air cargo supply chain stakeholders. Both IATA and Boeing recently
predicted growth in cargo demand in 2018 of around 4.5 percent which,
considering the heady numbers recorded in 2017, would represent a healthy
year-on-year expansion. Reviewing 2017 By The Numbers As de Juniac noted, aided
by 5.7 percent year-on-year demand growth in December, IATA’s full-year
2017 data for global air freight markets showed that demand, measured
in freight ton kilometers, grew by 9.0 percent—more than double
the 3.6 percent annual growth recorded in 2016 and twice the 4.3 percent
expansion in world trade. World Winners Galore WorldACD, meanwhile, hailed
2017 as “a record breaker.” Of course, in a ‘Trumpian’
zero-sum world, not everyone can be a ‘winner.’ But in 2017
it was difficult to identify the losers. General cargo volumes grew by
10.5 percent compared to 2016, according to WorldACD, while specific cargo
products grew by 7.4 percent, resulting in overall volume growth of 9.6
percent. “The categories with the highest volume growth were Vulnerables
& High Tech, Pharmaceuticals, and Flowers, showing a USD-yield growth
of 8 percent, 5.4 percent, and 1 percent, respectively,” said the
analyst. So What About 2018? With positive trends continuing
through the past year, the big question is of course how long all of this
will continue. |
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17 No. 5 Climate Is Front Page News Chuckles for January 29, 2018 Nordic Countries Go Greener Qatar Cargo QEP Cool |
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