{"id":1391,"date":"2020-03-12T20:16:04","date_gmt":"2020-03-12T20:16:04","guid":{"rendered":"http:\/\/www.bocintl.com\/en\/?p=1391"},"modified":"2020-03-12T20:16:04","modified_gmt":"2020-03-12T20:16:04","slug":"the-boc-blast-354-transatlantic-air-freight-rates-soar-as-us-imposes-europe-travel-ban","status":"publish","type":"post","link":"https:\/\/www.bocintl.com\/web\/the-boc-blast-354-transatlantic-air-freight-rates-soar-as-us-imposes-europe-travel-ban\/","title":{"rendered":"The BOC Blast 354 – Transatlantic Air Freight Rates Soar as US Imposes Europe Travel Ban"},"content":{"rendered":"\n
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Transatlantic Air Freight Rates Soar as US Imposes Europe Travel Ban<\/strong><\/p>\n\n\n

Theloadstar.com\nMarch 12, 2020<\/p>\n\n\n

Transatlantic\nair freight rates are expected to soar, possibly overnight, following the US\ntravel ban on mainland Europe, excluding \u2013 for now \u2013 the UK and Ireland.<\/p>\n\n\n

Up to 80%\nof air freight capacity on the transatlantic could be cut as airlines ground\npassenger flights, with bellies normally taking the lion\u2019s share of the\ncapacity on the route.<\/p>\n\n\n

\u201cIAG, Air\nCanada, Virgin and Aer Lingus are all going to be very busy,\u201d said one senior\nair freight analyst. \u201cThere is a tremendous amount of trade between the two\ncontinents, and the vast majority is in bellies. If that capacity plunges, you\ncan only imagine the reduction in trade on the Atlantic. There is going to be\ntremendous pressure on capacity.\u201d<\/p>\n\n\n

One\nEuropean forwarder told The Loadstar: \u201cThis is going to be another case of \u2018pay\nto play\u2019. Where prices are going to go is anyone\u2019s guess.\u201d Current dynamic load\nfactors on the transatlantic are 78% westbound, and 60% eastbound, according to\nClive Data Services. Even with a modest assumption of 60% of the capacity\nremoved, demand is easily going to outstrip supply.<\/p>\n\n\n

\u201cThere\nare so few airlines with freighters left,\u201d said the analyst. \u201cThe US majors\nhave none, it\u2019s really only Lufthansa and AF-KLM, and they have cut their\nfreighter fleets. This is a big gift for IAG.\u201d<\/p>\n\n\n

Forwarders\nsaid that any BSAs on non-cut capacity would be unlikely to be honored by the\nairlines, and in any event, most contracts would only last until the end of the\nmonth.<\/p>\n\n\n

\u201cThe US\nmarket tends to work on spot rates anyway.\u201d<\/p>\n\n\n

Airlines\nthroughout Europe are said to be in meetings to determine how to manage their\ncapacity, with more information expected this afternoon. Some are already\ntalking about using passenger aircraft just to move freight on the\ntransatlantic \u2013 and are looking to command a high price for it.<\/p>\n\n\n

Trucking\nis also expected to be key, with mainland European carriers looking to fly\ngoods into Canada and Mexico on passenger aircraft and trucked over the borders\ninto the US. In Europe, forwarders are looking to truck freight into the UK for\nVirgin and IAG flights into the US.<\/p>\n\n\n

\u201cCargo is\ngoing to be redirected and trucked,\u201d said one forwarder. \u201cThe multinational\nforwarders will already be diverting it to the UK.\u201d<\/p>\n\n\n

However, belly capacity from the UK has already been cut. BA announced on 2 March it was cutting back transatlantic flights as passenger demand fell. Norwegian cancelled 22 long-haul flights between Europe and the US from 28 March to 5 May.<\/p>\n\n\n

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Transatlantic Air Freight Rates Soar as US Imposes Europe Travel Ban Theloadstar.com March 12, 2020 Transatlantic air freight rates are expected to soar, possibly overnight, following the US travel ban on mainland Europe, excluding \u2013 for now \u2013 the UK and Ireland. Up to 80% of air freight capacity on the transatlantic could be cut<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[507],"tags":[],"class_list":["post-1391","post","type-post","status-publish","format-standard","hentry","category-the-boc-blast"],"_links":{"self":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/1391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/comments?post=1391"}],"version-history":[{"count":0,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/1391\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/media?parent=1391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/categories?post=1391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/tags?post=1391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}