Continuing high transpacific ocean prices reflects increased demand. Less Container Load (LCL) and Full Container Load (FCL) bookings on Freightos went up 40% and 42%, respectively last month, a marked contrast to last year when they didn’t increase at all.
Freightos data shows recent increases in US imports from China. Paradoxically, they indicate that the trade tariffs are driving increased Chinese imports in the short term. Even before September’s big announcement, the speed with which the first two rounds of tariffs were implemented prompted many importers to immediately start stocking up. The January 1 tariff increase is still spurring demand, but so too is the specter of tariffs soon being applied to all remaining products.” — Zvi Schreiber, CEO, Freightos
This week’s report
|Week 45||Week 44||Last year*|
|China – US West Coast||$2,582||1%||80%|
|China – US East Coast||$3,642||4%||85%|
|China – North Europe||$1,569||3%||1%|
|North Europe – US East Coast||$1,515||-15%||2%|
|* Compared to the corresponding week in 2017|
Transpacific pricing continued an extended run of 18-month highs. China-West Coast prices were above the $2,000 mark for the 14th week in a row (the last time it breached this mark was the week before Chinese New Year in 2017). Similarly, the China-East Coast prices breached the $3,000 mark for the 15th straight week.
High transpacific prices are a result of normal peak season activity as well as shippers front-loading to beat 1 January trade tariff increases. Prices are likely to stay high into mid-December, or even possibly until Chinese New Year, if, as Bloomberg recently reported, President Trump follows through with a threat to subject the remaining $257 billion worth of Chinese imports to a tariff.
China/North Asia to North America West Coast prices rose soon after the first tariff was announced in June and have stayed high since. This is in stark contrast to last year, when, without an unexpected spurring of demand, overcapacity saw prices actually falling most weeks from late August onward.
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/