Freightos Baltic Index: USWC rates slip as USEC rates rise slows
RATES on from the congested Asia-US west coast have fallen 13 per cent from a February high while east coast rates have fallen five per cent, though still posting 16 per cent higher growth than at the end of 2020, noted the Freightos Baltic Index
21 March 2021 - 19:00
Easing may be due to importers shifting orders from LA/Long Beach to other ports, just as carriers are adding new Asia-US east coast services too.
'Spot rates may be starting to reflect that shift. Asia-US west coast prices have now fallen 13 per cent from their February high, and are just 11 per cent higher than their May-December plateau rate,' said the FBX Weekly report.
Meanwhile, Asia-US east coast rates increased last week. They are just five per cent below their January peak, and are 16 per cent higher than they were in December.
Strong demand on the transatlantic has pushed ocean rates up 20 per cent since the end of January, said the report.
China-US west coast prices (FBX01 Daily) fell five per cent to $4,292/FEU. This rate is 224 per cent higher than the same time last year.
China-US east coast prices (FBX03 Daily) increased six per cent to $5,716/FEU, and are 125 per cent higher than rates for this week last year.
'Port congestion and delays are still a problem at the port of LA/Long Beach, and all indications are that there won't be any meaningful decrease in ocean freight demand in the near future,' said the report.
Though February Asia-US import volumes were down 18 per cent from January, they were still at about peak pre-Chinese New Year levels, and March volumes were expected to be up month on month, it said.
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