FBX Index: Looking forward
Asia to Europe continued to grow in January, with FBX 11 up 12% since the beginning of the month.
Asia to Europe continued to grow in January, with FBX 11 up 12% since the beginning of the month. Much of this appears to be the tail-end of an enormous rate spike that began in November, as spot prices start to gently come-off at the end of the month. The FFA forward curve for the Asia-Europe head haul had seen continuous correction for Q1 21 and the individual months in line with these spot price changes. However, confidence has started to grow in terms of pricing from Q2/3 21 and Cal 21 onwards. Buyer and seller interest remain in favour of closing a very widespread in interests generated on the back of the 2020 container market bull run.
We have also started to see prices on the head-haul routes spread into the back-haul price. The end of 2020 saw the cancellation of a number of back-haul commodity shipments that have since returned at higher rates, with the routes now approximately in correlation with each other, albeit at a substantial and understandable discount.
About Peter Stallion, Head of Air and Containers, Freight Investor Services
Peter Stallion heads up the Air and Container Freight desks at FFA brokerage Freight Investor Services. He started his career in air freight chartering, and has a passion for emerging risk management markets and the logistics industry.
Source: Baltic Exchange