Transpacific ocean freight peak season has been a bonanza, with prices still more than double last year. However, doubtful the demand would stay up, carriers cancelled the 1 December General Rate Increase (GRI). This week, West Coast prices are down $254, while East Coast prices are down $177.
Many importers from China front-loaded in advance of the 1 January scheduled increase to the 10% trade tariff. That boosted transpacific peak pricing, but there is a limit as to how much front-loading you can, or should, do. With the majority of pre-Christmas demand now largely over, prices have faltered recently.”- Zvi Schreiber, CEO, Freightos
This week’s report
|Week 48||Week 47||Last year*|
|China – US West Coast||$2,198||-10%||128%|
|China – US East Coast||$3,601||-5%||123%|
|China – North Europe||$1,477||1%||11%|
|North Europe – US East Coast||$1,515||0%||34%|
|* Compared to the corresponding week in 2017|
Now that the tariff increase has been given a 90-day reprieve, transpacific prices should continue trending downwards, in all likelihood up until Chinese New Year.
Although transpacific prices dropped this week (West Coast from $2,452 to $2,198, East Coast from $3,778 to $3,601), they are still more than twice the price of this time last year.
This week marks the 18th week in a row that China-East Coast prices have been above the $3,000 mark. For China-West Coast, it’s the 17th week prices have been higher than $2,000, although this run will likely end next week.
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/