MIDDLING spot rates paid by shippers in the 75th percentile of the market for transit from the Far East to the US east coast have surged by 88 per cent since May 3, according to Xeneta analysts, reports New York's FreightWaves
MIDDLING spot rates paid by shippers in the 75th percentile of the market for transit from the Far East to the US east coast have surged by 88 per cent since May 3, according to Xeneta analysts, reports New York's FreightWaves. Now rates stand at US$6,100 per FEU. This price jump reflects the willingness of shippers to incur higher costs to ensure the movement of goods, driven by the temporary window created by the US-China reciprocal tariff pause.
In that time, the Far East to US west coast average price tracked at $5,082 from $2,615 per FEU. The north Europe to US east coast average spot rate increased to $2,129 from $2,081 the previous week.
The 90-day respite from higher duties has led liner operators such as Cosco, Evergreen, Hapag-Lloyd and HMM to amplify their spot rate charges, Xeneta said, pushing for hikes as steep as $3,000 per FEU.
Meanwhile, mid-high spot rates have also climbed by 67 per cent from the Far East to the US east coast, reaching $7,180 per FEU by early June, as a significant number of businesses attempt to expedite shipments amid volatile trade conditions. The Far East to US west coast price was $6,100 per TEU.
However, the price dynamics are not limited to the transpacific trade. The mid-high shipping rate on the Far East to north Europe route has also seen an upward trend, rising by 32 per cent since the end of May and currently priced at $2,704 per FEU.
This increase occurs despite the four-week rolling average capacity offered on this trade lane hitting 346,000 TEU as of June 5, a level not witnessed even during the peak of the Covid crisis shipping rush.
SeaNews Turkey
