SEA freight rates into both the US east and west coast have been rising on the back of strong import activity, regional trade shifts, tighter vessel supply, fuel price hikes and the threat of higher tariffs.
Spot container rates from Asia-to-US west coast are at US$2,000 per FEU, up from $1,140 per FEU at the beginning of July, according to New York's FreightWaves' SONAR data. The Asia-to-US east coast rates also exceeded $3,000 per FEU from mid-August, up from $2,200 per FEU at the beginning of July.
London's Drewry Maritime container research manager Simon Heaney highlighted in a report by FreightWaves that US east and Gulf coast ports achieved 10 per cent volume growth by the end of the second quarter.
Import data shows the strength continued into the third quarter with the Georgia Ports Authority registering 13 per cent throughput growth at the port of Savannah to 378,767 TEU, and the port of Charleston saw volumes increase by 10 per cent year on year to reach 200,594 TEU in July.
Mr Heaney noted that US east coast ports are being helped by shifting trade patterns due to the expansion of the Panama Canal, resulting in east coast gateways clocking up higher growth than the west coast.
Asia-to-US east coast trade lanes are seeing capacity utilisation of 95 per cent compared to the 85 per cent utilisation level seen on containerships on the Asia-to-US west coast trade, Mr Heaney said.
Despite the demand growth, shipping lines are being cautious over injecting more capacity along the US east coast, further underpinning the rate rise.
Of the 19 Asia-US east coast container service offerings only three have weekly shipping capacity of 10,000 TEU or more, according to PR News Service director Paul Richardson.
'All these ports along the US east coast - Newark, Savannah, Charleston - got ready for larger ships,' Mr Richardson said. However, carriers are still running ships in the 6,000 to 9,000-TEU range for their US east coast service 'because the market demand is not there yet,' Mr Richardson said.
US east coast service also saw some further rationalisation as Israel's Zim Shipping Services announced it would align service offerings with the 2M Alliance, effectively reducing sailings to the US east coast from seven to five.
On the US west coast, the transpacific container trades have seen heftier capacity cuts going into the third quarter, which has helped bolster rates. The Ocean Alliance shelved one weekly transpacific sailing that removed 10,000 TEU of capacity. THE Alliance also ended a transpacific service and put a smaller ship on another line lowering capacity 22 per cent.
Mr Heaney also pointed out the emergency surcharges to deal with higher fuel costs became effective for US trades at the start of the third quarter.
Rates are also strengthening as shippers try to front-run the potential for higher tariffs on imported consumer goods.
Spot container rates from Asia-to-US west coast are at US$2,000 per FEU, up from $1,140 per FEU at the beginning of July, according to New York's FreightWaves' SONAR data. The Asia-to-US east coast rates also exceeded $3,000 per FEU from mid-August, up from $2,200 per FEU at the beginning of July.
London's Drewry Maritime container research manager Simon Heaney highlighted in a report by FreightWaves that US east and Gulf coast ports achieved 10 per cent volume growth by the end of the second quarter.
Import data shows the strength continued into the third quarter with the Georgia Ports Authority registering 13 per cent throughput growth at the port of Savannah to 378,767 TEU, and the port of Charleston saw volumes increase by 10 per cent year on year to reach 200,594 TEU in July.
Mr Heaney noted that US east coast ports are being helped by shifting trade patterns due to the expansion of the Panama Canal, resulting in east coast gateways clocking up higher growth than the west coast.
Asia-to-US east coast trade lanes are seeing capacity utilisation of 95 per cent compared to the 85 per cent utilisation level seen on containerships on the Asia-to-US west coast trade, Mr Heaney said.
Despite the demand growth, shipping lines are being cautious over injecting more capacity along the US east coast, further underpinning the rate rise.
Of the 19 Asia-US east coast container service offerings only three have weekly shipping capacity of 10,000 TEU or more, according to PR News Service director Paul Richardson.
'All these ports along the US east coast - Newark, Savannah, Charleston - got ready for larger ships,' Mr Richardson said. However, carriers are still running ships in the 6,000 to 9,000-TEU range for their US east coast service 'because the market demand is not there yet,' Mr Richardson said.
US east coast service also saw some further rationalisation as Israel's Zim Shipping Services announced it would align service offerings with the 2M Alliance, effectively reducing sailings to the US east coast from seven to five.
On the US west coast, the transpacific container trades have seen heftier capacity cuts going into the third quarter, which has helped bolster rates. The Ocean Alliance shelved one weekly transpacific sailing that removed 10,000 TEU of capacity. THE Alliance also ended a transpacific service and put a smaller ship on another line lowering capacity 22 per cent.
Mr Heaney also pointed out the emergency surcharges to deal with higher fuel costs became effective for US trades at the start of the third quarter.
Rates are also strengthening as shippers try to front-run the potential for higher tariffs on imported consumer goods.