The air freight peak season is in full swing and about to get even busier with all the big e-commerce events taking place this month, including Singles’ Day, Black Friday, and Cyber Monday. Have you seen this reflected in your rates?

Sources say online global retail sales are expected to exceed $4.8 trillion by 2021 and e-commerce is the fastest-growing sector driving global air freight volumes. It’s revolutionary time in the air cargo market. Here at FIS we are ready to help you manage that change and volatility that is bound to come with such growth.

The TAC Index has published the Ex. China to Europe basket rate shown below at 3.18USD this week, down an almost insignificant 0.01%. This basket rate is comprised of their composite routes, also shown below. HKG – EUR up 6.54% and seeing PVG – EUR down 7.57%. We are unlikely to see much more of a decrease than this as the month carries on.

According to the index the ‘big movers’ this week are HKG – AMS with a 7.50% increase on last week and a rather exaggerated 12.7% decrease in the HKG to LAX route.

Forward Curve - indicative update
CHINA - EUROPE ROUTE BASKET - USD/KG
BID
ASK
VALUE
CHANGE
Nov
3.25
3.35
3.30
-0.05
Dec
3.40
3.50
3.45
0.00
Jan
3.30
3.40
3.35
0.00
Q1 19
3.12
3.22
3.17
0.00
Cal - 19
3.27
3.37
3.32
0.00
Cal - 20
3.67
3.77
3.72
0.00