CARRIERS are offering more competitive rates from Asia to the US with voyage-specific 'bullet' prices and commodity-specific rates undercutting the listed spot and freight-all-kinds (FAK) rates, especially to the west coast, reports New York's Journal of Commerce.
These new rates - about US$1,000 per FEU lower than the listed rate - come as capacity to the west coast exceeds current demand due to the 10 new or reinstated services deployed on the transpac in recent months.
Non-vessel-operating common carrier Kerry Apex vice president Kurt McElroy said: 'There's a proliferation of special rates that is accelerating.'
The spot rate from North Asia to the west coast as of Friday was US$6,000 per FEU. By contrast, a number of carriers are offering prices closer to $5,000 per FEU in the form of one-time, or 'bullet,' rates, as well as so-called blended rates or rates specific to commodity or trade lane, said Jon Monroe, who advises about two dozen NVOs.
'Those are the rates that are moving cargo,' Monroe said.
That reality is an indication that what was a tight market in the eastbound transpacific just two months ago is beginning to loosen up, and carriers are competing aggressively with each other to fill their slots.
'Carriers have elected to ship under commodity [specific] rates, even to the east coast. The big carriers all have special rates,' Mr McElroy said. 'There are so many special rates that special rates are becoming the effective rate.'
The special rates for commodities offer discounts for everything from furniture and tyre rims to forest product imports, he said.
A carrier executive confirmed that the special rates he's seeing in the market are in the range that NVOs are quoting to their customers. 'They're not far off,' the source said. 'Maybe they're a little low.'
A second carrier executive said the general rate increases (GRIs) that most transpacific carriers announced last week are helping to 'stabilise rates' on the trade lane. The GRIs did not push spot and FAK rates higher, though.
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These new rates - about US$1,000 per FEU lower than the listed rate - come as capacity to the west coast exceeds current demand due to the 10 new or reinstated services deployed on the transpac in recent months.
Non-vessel-operating common carrier Kerry Apex vice president Kurt McElroy said: 'There's a proliferation of special rates that is accelerating.'
The spot rate from North Asia to the west coast as of Friday was US$6,000 per FEU. By contrast, a number of carriers are offering prices closer to $5,000 per FEU in the form of one-time, or 'bullet,' rates, as well as so-called blended rates or rates specific to commodity or trade lane, said Jon Monroe, who advises about two dozen NVOs.
'Those are the rates that are moving cargo,' Monroe said.
That reality is an indication that what was a tight market in the eastbound transpacific just two months ago is beginning to loosen up, and carriers are competing aggressively with each other to fill their slots.
'Carriers have elected to ship under commodity [specific] rates, even to the east coast. The big carriers all have special rates,' Mr McElroy said. 'There are so many special rates that special rates are becoming the effective rate.'
The special rates for commodities offer discounts for everything from furniture and tyre rims to forest product imports, he said.
A carrier executive confirmed that the special rates he's seeing in the market are in the range that NVOs are quoting to their customers. 'They're not far off,' the source said. 'Maybe they're a little low.'
A second carrier executive said the general rate increases (GRIs) that most transpacific carriers announced last week are helping to 'stabilise rates' on the trade lane. The GRIs did not push spot and FAK rates higher, though.
SeaNews Turkey
