THE seasonal dip in container spot rates from Asia to the United States belies market strength, as carriers add capacity and big US retailers slow-walk annual service contract talks, says New York's Journal of Commerce.
But this year spot rates were much higher than last year entering the Lunar New Year, so even with a large drop in spot rates, prices are not expected to fall to last year's nadir.
Also, there are strong signs for growth ahead, according to US retailers and industry analysts. US retailers have significantly upped their projections for US imports from Asia in the second quarter and into the second half of the year.
Platts, a sister company of the Journal of Commerce within S&P Global, said it pegged Asia-to-west coast spot rates at US$3,000 per FEU and rates to the east coast at $4,500, down $900 and $1,000, respectively, on the week and the lowest for both since mid-January.
Last year, Chinese New Year factory closures began on January 22, with the west coast spot rate at $1,290 per FEU and the east coast spot rate at $2,780 per FEU. One month later, the west coast spot rate had edged down to $1,200 per FEU and the east coast rate fell to $2,240 per FEU.
SeaNews Turkey
But this year spot rates were much higher than last year entering the Lunar New Year, so even with a large drop in spot rates, prices are not expected to fall to last year's nadir.
Also, there are strong signs for growth ahead, according to US retailers and industry analysts. US retailers have significantly upped their projections for US imports from Asia in the second quarter and into the second half of the year.
Platts, a sister company of the Journal of Commerce within S&P Global, said it pegged Asia-to-west coast spot rates at US$3,000 per FEU and rates to the east coast at $4,500, down $900 and $1,000, respectively, on the week and the lowest for both since mid-January.
Last year, Chinese New Year factory closures began on January 22, with the west coast spot rate at $1,290 per FEU and the east coast spot rate at $2,780 per FEU. One month later, the west coast spot rate had edged down to $1,200 per FEU and the east coast rate fell to $2,240 per FEU.
SeaNews Turkey