Transpacific freight rates defied market expectations with further rate hikes coming at the end of January after COSCO and MSC pushed ahead with their FAK rate increases from 1 February with the other carriers finally deciding to follow suit. Although some carriers have started to offer rate discounts on selected sailings in February, the increased FAK rates have raised overall market levels which will hold at least until the first week of February before a larger correction sets in after the C
Be aware if you have been expecting interest rate cut this year: Ocean freight that may have contributed to a chunk of inflation during 2021-2022 have staged a come back. Looking back the past few years, the correlation between freight-to-cargo ratio and US inflation averaged 74%. The take-off in May 2020 and peak in July 2022 of the two lines coincide with each other while the flooring of the freight-to-cargo ratio led the US inflation by few months. The swing from May 2020 to July 2022 for t
Freight rates surged across the board, with Transpacific SCFI rates rebounding sharply last week. MSC’s rate hike to $5,000/feu to the USWC and $6,900/feu to the USEC from 15 January jolted the rest of the carriers into following suit, with spot rates to both the West Coast and East Coast rising by over 40% last week. Zim has confirmed the introduction of a new PNW string from next week as it seeks to take advantage of the higher transpacific rates rates. SCFI rates made its 8th consecutive we
The Panama Canal disruptions failed to stop rates to the US East Coast from slipping last week, with THE Alliance carriers the main casualties from the reduced transit slots. 2M and OCEAN Alliance services are not affected as yet with only minimal delays on their Panama services. East Coast capacity remains sufficient to meet market demand despite draft restrictions that has limited full container intake for the Panama passage. Rates to the West Coast rose slightly last week but uneven utiliza
The rise in the SCFI rates to the US West Coast masks rapidly deteriorating conditions on the route, with utilization levels falling to 81%. The “Express” services have performed poorly including the Zim e-Commerce Express (ZEX) that was only half full on its first 2 sailings following its relaunch in November. Rates to the East Coast are performing better despite a similar drop in capacity utilization, with carriers able to secure premiums due to the Panama congestion even with transit times
Rates to the US West Coast are slipping quickly as the window for holiday season shipments have closed even for the express e-commerce focused services, with the SCFI spot rates dropping by 4.1% last week. But rates to the East Coast are on firmer ground, with carriers pushing ahead with Panama Canal Surcharges that will kick in from December, with all of the FE-USEC services through the Panama Canal to compete for limited neo-panamax transit slots from January. SCFI spot rates to Europe have
The SCFI transpacific rate assessments surged for a second straight week to pass $2,100/feu to the West Coast and $2,400/feu to the East Coast but these rates cannot be sustained in the traditional slack season in November, with spot rates settling into the usual routine of early month hikes followed by mid-month declines. The same pattern will be repeated through November, with capacity rising sharply this month on both WC and EC routes. Forward capacity forecasts for November currently shows a
Transpacific rates to the US West Coast enjoyed a minor rebound last week, on the back of strong e-commerce cargo demand after the Chinese Golden Week holidays coinciding with reduced capacity availability due to blanked sailings with week 41 capacity more than 40% less than usual. East Coast rates remained under pressure but the rate of decline has slowed due to reduced capacity availability. But more space will return in November, with current projections showing a 22% increase to the West Co
Transpacific rates were mostly unchanged during the week, with the Chinese holidays producing little rate movements. However, the SCFI assessment is still expected to register a sharp fall when publication resumes this week after the Golden Week holidays, as the actual market rates have already dropped by over $200/feu below the SCFI level. Although carriers have filed for a $1,000/feu rate increase on 15 October and 1 November, both of these increases are not expected to stick given the curre
The SCFI assessment on the Transpacific shed a further 3.4% last week to the West Coast but it is the East Coast where carriers are facing greater pressure with rates dropping by 5.4%. Spot rates are available in the market at up to $300/feu lower than the SCFI rates, with carriers unable to fill the capacity available despite a 13% drop in average capacity in October on the West Coast and 23% drop in the East Coast. Rates to North Europe have cracked below the 2019 levels and appears to be in