Coronavirus, Chinese New Year, Asia to Europe prices increase

Asia to Europe has seen a boost in TAC Index prices following pre-Lunar New Year volumes, Shanghai to Europe up 9.16%, Hong Kong to Europe up 1.43%, Shanghai to Amsterdam up 19.4%, Shanghai to London up 4.30%.

This morning British Airways announced it would suspend all direct flights to China, reducing overall direct China-UK capacity significantly. You may expect that other airlines might follow suit, with domestic freighters becoming more attractive for China-Europe shipments. The effect on prices is as of yet unknown, volumes are seasonally low and will be hit by factory closures and quarantine measures.

Freight businesses should pay close attention to any subsequent back-log of volume that will be released into the market if and when quarantine measures have been retracted.

Our latest prices, all contract types (TAC Index):

• China to Europe Basket - $2.78 (up $0.13)
  
• Hong Kong to Europe - $2.83 (up $0.04)
  
• Shanghai to Europe - $2.74 (up $0.23)
  
• Hong Kong to Frankfurt - $2.71 (up $0.03)
  
• Hong Kong to Amsterdam - $2.77 (up $0.02)
  
• Hong Kong to London - $2.81 (down $0.16)
  
• Shanghai to Frankfurt - $2.56 (up $0.39)
  
• Shanghai to Amsterdam - $3.14 (up $0.51)
  
• Shanghai to London - $2.91 (up $0.12)
  
• Brent crude up 33 cents, $59.84 by 0103GMT.
  
• WTI Crude up 31 cents, $53.79
  

The effects of manpower restrictions caused by quarantine measures in China are also unknown, however likely to cause further volatility.