Peak season transpacific freight rates sink 25pc below last year's
Transpacific freight rates to the US West Coast are 25 per cent below where they were this time last year, according to the latest data from the Freightos Baltic Index, reports Splash 247
Transpacific freight rates to the US West Coast are 25 per cent below where they were this time last year, according to the latest data from the Freightos Baltic Index, reports Splash 247.
This suggests the trade war has holed the peak season below the water. As of last week, China-US West Coast prices stood at US$1,548 per FEU.
'While carriers implemented a whopping 30 per cent GRI last August, this year they stuck with a lacklustre $100-$250 GRI price range, and even those haven't fully taken. While prices are four per cent up on last week, they remain flat compared to July and an impressive 25 per cent under last year's rates,' online platform Freightos noted in a weekly commentary.
China-US East Coast prices meanwhile stood at $2,822 per FEU as of, down about six per cent from last week. Carrier GRIs in the $150-$300 price range didn't take and are 13 per cent behind last year's rates.
'Both transpacific lanes have suddenly fallen well behind 2018 prices. Last year provides an interesting comparison, where August saw major peak season increases, bolstered by trade panic sparked by tariffs,' said Freightos chief marketing officer Eytan Buchman.
'The combination of advanced shipments in May, a recent drop in advance shipments due to the tariff truce, and insufficient time to advance ship and beat the now-instituted tariffs all add up to surprisingly low August demand,' he said.
UK consultants Drewry said in a report this week that as much as four million TEU of China-US trade could be hit by US President Donald Trump's latest tariff threats.