As of week commencing 8th July 2019, we will begin building in AFFA market bids and offers into the traded China/ Hong Kong to Europe forward curve. As this market develops the forward curve will become more data-driven, ensuring its validity as a credible forward projection.
If you have any questions regarding the current forward curve please get in touch.
Market Comment
Market price recovery continues, however changes aren't significant enough to indicate an airfreight recovery. Recent positive price trends react to continued spot market cargo throughput, however this does not necessarily reflect demand increase related to trade tariffs.
Global prices may have reached the floor for 2018, indicating a near term future of positive price trends all the way through to Q4. However week on week prices remain consistently volatile, even on contract dominated lanes ex.Asia.
Forward Curve
The Freight Investor Services air cargo market report combines data from The Air Cargo (TAC) Index and perspectives from our wide array of clients to provide an view on the historical, present and future air cargo market. Constantly under review, market players can use the report to judge and assess air freight market volatility.The Forward Curve is an amalgamation of previous and prospective market data, weighted by live market information provided by our wide array of corporate clients. When trading an air cargo derivative, you can use the forward curve in conjuction with your own propriortory data to take a view as to where you think the market will turn next.
| Basket | USD/KG | CHANGE | CHANGE % | MTD |
| CHINA - EUR | 2.57 | 0.04 | 1.58% | 2.57 |
| CHINA - USA | 3.32 | 0.09 | 2.79% | 3.32 |
| Blended | USD/KG | CHANGE | CHANGE % | MTD |
| PVG/EUR | 2.39 | -0.06 | -2.45% | 2.39 |
| HKG/EUR | 2.74 | 0.12 | 4.58% | 2.74 |
| PVG/US | 3.25 | 0.07 | 2.20% | 3.25 |
| HKG/US | 3.39 | 0.12 | 3.67% | 3.39 |
'Airfreight routes (AGRs)' provide us with tradeable routes in conjunction with baskets, by maximising volumes along regional tradelanes. AGRs calculate the average of several correlating arrival points noted by their airport codes
| Airfreight Route (AR) | Description | PREVIOUS | USD/KG | CHANGE |
| AGR 1 | HKG to LAX & ORD & JFK | 3.13 | 3.24 | 3.51% |
| AGR 2 | HKG to LHR & FRA & AMS | 2.75 | 2.79 | 1.45% |
| AGR 3 | HKG to SIN & BKK & PVG | 1.23 | 1.21 | -1.63% |
| AGR 4 | PVG to AMS & FRA & LHR | 2.37 | 2.35 | -0.84% |
| HKG/CN - EUROPE AGGREGATE LANES - USD/KG | ||||
| BID | ASK | VALUE | CHANGE | |
| Jun-19 | 2.90 | 3.00 | 2.95 | 0.00 |
| Jul-19 | 2.95 | 3.05 | 3.00 | 0.00 |
| Aug-19 | 2.95 | 3.05 | 3.00 | 0.00 |
| Q3 19 | 2.90 | 3.00 | 2.95 | 0.00 |
| Cal - 19 | 3.04 | 3.14 | 3.09 | 0.00 |
| Cal - 20 | 3.44 | 3.54 | 3.49 | 0.00 |
| HKG/CN - US AGGREGATE LANES - USD/KG | ||||
| BID | ASK | VALUE | CHANGE | |
| Jun-19 | 3.33 | 3.43 | 3.38 | 0.00 |
| Jul-19 | 3.35 | 3.45 | 3.40 | 0.00 |
| Aug-19 | 3.26 | 3.36 | 3.31 | 0.00 |
| Q3 19 | 3.69 | 3.79 | 3.74 | 0.00 |
| Cal - 19 | 3.91 | 4.01 | 3.96 | 0.00 |
| Cal - 20 | 4.12 | 4.22 | 4.17 | 0.00 |
