Sea/Air Freight Rate Update

Current comments re Sea and Air Rates.

Sea
So far rates this year have been a mixed bag.
Pre CNY rates firmed up but the demand was not as strong as expected.
Demand has been patchy from importers ex China in particular and hence the market has developed a spot rate environment with rates changing frequently.
The obvious problem with spot rates is that they do not apply evenly across the market and one line may have some space whilst others are fully booked.
Our philosophy of consistently with key lines still pays off as space reliability is key to our major clients. Add to this space reduction as a strategic tool used by shipping lines will probably continue for the balance of 2017.
Having said all this the trend at present is that spot rates are rising according to the SCFI Index in Shanghai and we do expect a Rate Increase in May.

Air
Airfreight does not get much attention at times but it’s noteworthy to note that Qantas have temporarily suspended the weekly freighter service from Shanghai to Sydney. This service begins in Chicago and does the trip via Shanghai.
As a result it will only be passenger planes coming down from China to Australia for a while and whilst there a quite a few cargo space is limited.
I expect a tightening of space and pricing over the next few weeks.

Kind Regards

Bruce Haines
Managing Director