- For only the second time since mid-May, ocean rates from China to US fell, albeit moderately, as carriers restore more capacity to the market to meet the stable demand.
- China to US West Coast rates have now fallen 6% since their early July peak.
- Air rates moved in the other direction, based on freightos.com marketplace data. After failing steadily since mid-May, rates out of China increased for the second consecutive week. High ocean rates and backlogged container shipments may be pushing some time-sensitive shippers to air, contributing to the rise.
China-US rates:
- China-US West Coast prices (FBX01 Daily) fell 3% since last week to $2676/FEU. This rate is 74% higher than the same time last year.
- China-US East Coast prices (FBX03 Daily) also dipped 3% to $3236/FEU, and are 10% higher than rates for this week last year.
Analysis
As available ships out of China remain full on steady demand, carriers have continued adding capacity back to the market on both Asia-EU and transpacific lanes for August.
The additional capacity caused ocean rates to fall slightly this week, for only the second time since mid-May, with China to US West Coast prices down 6% from their early July peak.
As a result of sailing constraints, shippers are reportedly being asked to book two weeks in advance to ensure their shipment will get on the desired sailing. It is possible that as these backlogs are cleared with August’s increase in available capacity, shipments rolling will decrease along with the current pressure on rates – as long as volumes remain steady.
The high rates and additional lead time to ship by ocean are pushing some time-sensitive shippers from ocean to air, contributing – together with the increase in PPE demand and peak season electronics – to the recent increase in air rates.
Freightos.com marketplace data shows air cargo rates from China to the US and Europe increased for the second consecutive week, after falling steadily since mid-May.
