THE growth in headhaul volumes from Asia to the east coast of North America is growing, but there is no massive cargo shift from west to east as commonly claimed, says London's Drewry Maritime Research.
Asian exports entering the east coast ports climbed in May by 12.4 per cent against April's volumes, rising to 356,200 TEU, but it fail to surpass October's record volume of 369,100 TEU.
This compares with the 2.4 per cent month-to-month increase in west coast imports, according to Drewry.
Year-to-date east coast volumes have been growing at a pace of 8.5 per cent while west coast traffic was up 5.3 per cent.
Currently east coast volumes as a proportion of all transpacific trade are half a percentage point higher at 25 per cent compared to a year ago.
West coast ports have lost some US-bound cargo to the east coast ports as importers have adopted contingencies to meet feared west coast labour disruption in the course of longshore contract talks, said the report.
The demand picture for June, as far as specifically US imports are concerned, would suggest that these contingencies have now ceased, despite the fact that management and unions have yet to conclude any new labour contract.
East coast imports from Asia dropped back month-on-month 5.4 per cent in June and the much smaller number of boxes handled at the Gulf ports retreated 10.5 per cent. Meanwhile, west coast ports posted a gain of 2.2 per cent.
During the first half of 2014, Asian cargo entering US ports has grown 6.3 per cent year-on-year, with USWC imports up 5.6 per cent and ECNA/US Gulf coast volumes up 8.1 per cent.
Consumer confidence in American households is growing and the index published by the Conference Board registered 90.9 in July and is now at its highest level since October 2007 at 95.2, said the report.
Strong employment growth and a brighter short-term outlook for the economy is driving this optimism, which in turn is generating robust retail sales growth.
Strong demand growth and healthy vessel load factors are finally powering significant gains in the going market rates, said Drewry.
For any additional space requirements beyond contract commitments, some shippers are being offered spot rates well in excess of US$4,000 to take cargo for the New York/Charleston and Savannah range of ports.
Drewry's World Container Index for a Shanghai-New York box registered $4,016 per FEU on August 7 when, for most of the first half of 2014, rates traded in a narrow range of $3,250-$3,350.
CONTAINER
19 August 2014 - 20:20
No mass exodus of containers from US west coast to eastern ports: Drewry
THE growth in headhaul volumes from Asia to the east coast of North America is growing, but there is no massive cargo shift from west to east as commonly claimed, says London's Drewry Maritime Research.
CONTAINER
19 August 2014 - 20:20
No mass exodus of containers from US west coast to eastern ports: Drewry
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