Transpacific prices continue their slide – China-West Coast dropped $80 in its seventh week of falling and China-East Coast dropped $85 in its fifth week of falling. Transpacific trade is now in the relative lull between stocking up for Christmas and the pre-Chinese New Year bottleneck. With the China-US trade tariff war leaving many importers overstocked; it wasn’t surprising that the mid-December General Rate Increase (GRI) was cancelled. But a new factor will see prices rising next week.
The International Maritime Organization’s (IMO’s) regulation requiring the sulphur content in maritime fuel to drop from 3.5% to 0.5% comes into force on 1 January, 2020. Several carriers have got into the act a year early. So far, we’ve seen recalculated bunker adjustment factors, EBS increases and new low-sulphur surcharges. These increases, beginning 1 January, will filter through next week with price rises in the 5%-10% range, depending upon trade lane.” – Philip von Mecklenburg-Blumenthal, VP of FBX, Freightos
This week’s report
|Week 52||Week 51||Last year*|
|China – US West Coast||$1,722||-4%||50%|
|China – US East Coast||$2,779||-3%||49%|
|China – North Europe||$1,418||-1%||-11%|
|North Europe – US East Coast||$1,818||-1%||61%|
|* Compared to the corresponding week in 2017|
Despite recent news that China didn’t buy a single US soybean in November, there’s been no further talk of trade tariff increases recently. Consequently, transpacific ocean prices continued to fall.
China-West Coast prices fell for the seventh week in a row, this week by $273. They are now only 67% of 11 November when they were $2,582. However, they are still 50% higher than prices this time last year.
China-East Coast prices fell for the fifth week in a row, this week by $85. They are now only 74% of 25 November when they were $3,778. However, similar to West Coast prices, they are still (just under) 50% higher than prices this time last year.
With freight prices also dropping on other key lanes (China-North Europe and North Europe-US East Coast), the net effect on the global index was a 2% drop.
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/