Following Chinese New Year, transpacific ocean prices are back to where they were at the beginning of the year. At $2,009, China-West Coast prices are just $6 higher than on January 6. At $3,110, China-East Coast prices are $27 lower.
Demand seasonally drops after Chinese New Year and freight prices take a tumble. China-West Coast prices dropped 25%, East Coast 22%, in the three weeks following last year’s holiday. In 2017, those same dips were 17% and 12%, respectively.
This week’s report
|Week 07||Week 06||Last year*|
|China – US West Coast||$2,009||0%||42%|
|China – US East Coast||$3,110||-2%||13%|
|China – North Europe||$1,723||2%||0%|
|* Compared to the corresponding week in 2018|
With China still returning to work after the Spring Festival holiday, China-West Coast prices did not move a cent last week. Carriers cancelled their mid-month General Rate Increases (GRIs), and new prices coming in this week are at lower rates. However, carriers are still a lot better off (42% better off) than this time last year when China-West Coast stood at $1,442.
Blank sailings this month, including 2M’s last-minute addition of another ship on the AE10/Swan loop, may help cushion the fall a little bit. Another cushion, that will likely have more impact mid-year, is the probable increase in ship demolitions, spurred by IMO’s new sulphur emissions regulations.
Carriers have devised different surcharge structures to help recoup costs incurred by those new regulations. That will complicate current Beneficial Cargo Owner (BCO) annual contract negotiations on the transpacific lane.
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/