July saw several price rises on the China-US lanes: start of month and mid-month General Rate Increases (GRI), emergency bunker surcharges and peak season surcharges. And, somewhat surprisingly, rates have held.
|Week 30||Week 29||Last year*|
|China – US West Coast||$1,607||-1%||20%|
|China – US East Coast||$2,664||-1%||17%|
|China – North Europe||$1,811||0%||1%|
|North Europe – US East Coast||$1,470||0%||8%|
|* Compared to the corresponding week in 2017|
● China-US West Coast rates are 38% on four weeks back and 23% up on eight weeks ago.
● China-US East Coast rates are 20% on four weeks back and 14% up on eight weeks ago.
Carriers have taken this to heart. 1 August GRIs are being implemented in the $400-$700/FEU range.
Freightos CEO, Zvi Schreiber comments:
“China-US ocean freight prices are holding in part because carriers have started cutting services making capacity tighter. To some extent, too, they are resisting the temptation to undercut competition and are instead standing firm with their prices. The pricing race to the bottom is not sustainable and carriers are making a concerted effort to withstand the downward price pressure.”
The Freightos Baltic Indices reflect weekly spot rates for 40-foot containers based on 12 to 18 million price points collected every week on 12 main shipping trade lanes. The data includes a headline index – the FBX Global Container Index (FBX) – a weighted average of the 12 underlying route indexes. This data is published every Sunday. See www.balticexchange.com/market-information/containers/