China-US west coast rates rise despite projections to the contrary
CHINA-US freight rates were up three per cent last week, even though volumes were expected to be down, reported the American Journal of Transportation
CHINA-US freight rates were up three per cent last week, even though volumes were expected to be down, reported the American Journal of Transportation.
The report comes as part of the fourth general rate increase in the last two months, as ocean rates from China to the US west coast are up 68 per cent since the end of May and 81 per cent year on year.
The surprise comes as China to US ocean rates fell for only the second since May last week, but prices increased again this week. Carriers are able to introduce their fourth increase since June.
Some industry insiders speculate this year's peak season will last through September and will focus on stay-at-home goods like furniture, electronics, and kitchenware.
The demand is keeping ships heading out of China at full capacity, allowing carriers to charge premiums to prevent shipments from being waved. Only four per cent of Asia to US ships cancelled in August.
The high rates with capacity increases and volumes down represents the unique nature of ocean trends, which have been difficult to explain this year because of Covid.
Meanwhile, China to US air cargo rates have been climbing for the third straight week due to an introduction of expected consumer electronic launches.
Although global capacity has been trending up, the elimination of some vessels out of China for maintenance, and the increase in demand driven by peak season electronics rollouts are putting pressure on prices.