SPOT RATES DECREASE ON THE TRANSPACIFIC ROUTE
Mike Wackett from the Loadstar reported yesterday that ocean carriers started to apply discounts and waiver of premium fees for late November and December shipments, leading in a significant decrease of container spot rates on the Asia-North America line: According to the Freightos Baltic Exchange (FBX), spot rates from Asia to the US west coast fell by 26% in the past week, to $13,924 per 40ft, and by 20% for east coast ports, to $15,865 per 40ft.
In July, especially strong peak season demand, coupled with congestion at the US west coast hub ports of Los Angeles and Long Beach, sent rates to record highs and carriers charged shippers desperate to secure equipment and space with huge premium fees. However, with an estimated 500,000 TEU of holiday goods now sitting on around 80 ships at anchor in the San Pedro Bay awaiting a berth, there is a lag in orders before the next anticipated peak, in January, prior to the Chinese New Year holiday.
“Importers will welcome the lower rates, but prices are likely to be kept well above the norm by port congestion, low inventories and still-elevated consumer demand,” warned Judah Levine, Freightos head research. Meanwhile, Drewry’s World Container Index for the Shanghai-Rotterdam route remained unchanged compared to last week, at $13,801 per 40ft, which is around 500% higher than a year ago.
Source: The Loadstar