Transpacific shipping capacity hits record high, with spot rates surging over 253% since February, as demand continues to rise amid Middle East tensions.
Ocean container shipping capacity from the Far East to the US West Coast has reached an all-time high, with spot rates climbing more than double digits, reported the American Journal of Transportation.
Xeneta Chief Analyst Peter Sand stated that offered capacity on the Transpacific hit about 350,000 TEU in the week commencing 29 June, surpassing the previous record set last year. Spot rates are now 253 per cent higher than before the Strait of Hormuz crisis in February.
Mr. Sand noted that carriers are scrambling to meet demand, with double-digit spot rate increases across all major fronthauls to the US and Europe. Shippers are moving goods early to avoid disruption during peak season amid continuing uncertainty in the Middle East.
MSC reinstated its Pearl service on 13 June, with the MSC LYSE V calling at Long Beach on 30 June. Yang Ming and Ocean Network Express are also deploying extra-loaders to boost supply.
Market data for 3 July showed average spot rates at US$6,639 per FEU from the Far East to the US West Coast, $8,362 to the US East Coast, $5,377 to North Europe, and $6,772 to the Mediterranean. North Europe to the US East Coast stood at $2,523.
Rates rose between 7 and 15 per cent week on week, with the sharpest increases on Transpacific trades. Compared with late February, spot rates are up 215 per cent to the US East Coast, 142 per cent to North Europe, 103 per cent to the Mediterranean, and 71 per cent to the US East Coast from North Europe.
Mr. Sand mentioned that more capacity will help shippers move goods more reliably, but it is not enough to reverse the upward trend, with rates expected to continue rising into mid-July.
