U.S. import numbers have stabilized from September.
LONDON – Spot ocean container rates fell 6% this week on average across all trade routes and have now fallen 21% in the past three weeks, according to rate tracker Drewry. Average rates now sit at $2,629 per 40-foot container, the lowest average since last May.
Drops in rates from China to the U.S. have been more substantial. Rates from Shanghai to Los Angeles fell 11% this week to $3,477 and follow drops of 11% and 7% in the two weeks prior. Likewise, Shanghai to New York saw rates drop 10% this week to $4,593, which again follows declines of 13% and 5%. Doing the math, that’s a 29% drop to Los Angeles and a 28% drop to New York in three weeks.
Drewry expects rates to continue to fall over the coming weeks as more shipping capacity comes online.
Container blog LinerLytica gave more specifics in an update, also highlighting Washington’s newly proposed fees on Chinese ships:
“The proposed levy on Chinese ships calling at U.S. ports could trigger moves to switch out Chinese-built ships from U.S. trades that would cause widespread disruptions over the coming month,” it wrote. “Chinese carriers would be most affected by the levies, and their potential exodus would create a void in the market as they account for 17% of U.S. container imports from the Far East. These uncertainties add to the current challenges that carriers are facing, with freight rates continuing to slide and carriers unable to maintain capacity discipline in the midst the roll-out of new Alliance services.
“Forward schedules show capacity increases across the board in March and unless carriers reverse course soon, freight rate hikes will continue to prove elusive.”
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