AJOT Newsroom
| April 25, 2023
| Maritime | Liner Shipping
Key insights:
1. ILWU and PMA announced significant progress in negotiations last week, with more meetings being held this week.
2. Transpacific GRIs succeeded in pushing ocean rates up significantly last week - a 71% increase for Asia - US West Coast – with rates remaining at this level so far this week as well.
a. Carriers are announcing additional increases for May, though there is skepticism that these will succeed given no significant increase in volumes just yet.
3. Carriers are also reducing vessel speeds as a strategy to reduce capacity, though so far, Freightos marketplace data shows transpacific transit times have continued to fall in April, and are on par with 2020 levels.
4 Transatlantic ocean rates have fallen more than 40% since the start of the year and more than 60% since their peak last summer as volumes continued to decline in March. Prices are now on par with 2021 levels but are still an outlier for US import rates as they remain 60% higher than in 2019.
