Freightos Baltic Container Report

46


  • Transpacific pricing fell through December due to the 90-day truce on latest China trade tariff increase.
  • But this week a combination of GRI and fuel-related surcharge increases saw an increase in prices.
  • More carriers are expected to increase their FAK rates during the month.
  • The global index also jumped this week, by 10% to $1,552.

The 90-day truce on the latest China trade tariff increase caused transpacific pricing to fall through December reports The Baltic Briefing.

New Price Increase with A New Year

A combination of fuel-related surcharge increases and General Rate Increases (GRIs). Carriers are seeking to cash in on an uptick in demand caused by post-Christmas replenishment and the looming Chinese New Year shutdown. As a consequence, this week China to US West Coast prices jumped 16% (from $1,722 to $2,003) and China to US East Coast prices jumped 13% (from $2,779 to $3,137). China to North Europe prices also jumped 13%, with more to come as other carriers have announced Freight All Kinds (FAK) increases for later in the month. Coming into contract renegotiation time at this time, carriers will be hoping that spot prices stay high.

The Ripped Playbook

Philip von Mecklenburg-Blumenthal, VP of FBX, Freightos says that the transpacific ocean prices drop just before Christmas, and then pick up again early January as logistics managers start replenishing stock. Chinese New Year shutdown causes prices to spike again, but after that, they fall away until next peak season. According to him, President Trump tore up the playbook and so, importers, fearing trade tariff increases, imported early, pushing prices up from early summer. They were already over-stocked before the latest trade tariff got a 90-day reprieve. If the tariffs go back on, prices will go up again.

This week’s report

Week 01 Week 52 Last year*
Global $1,552 10% 22%
China – US West Coast $2,003 16% 37%
China – US East Coast $3,137 13% 32%
China – North Europe $1,598 13% -2%
North Europe – US East Coast $1,818 -0% 28%
* Compared to the corresponding week in 2017

 

The Trump-Xi Truce

The 90-day truce on the latest China trade tariff increase had caused transpacific pricing to fall through December. That changed this week when a combination of GRI and fuel-related surcharge increases saw China to US West Coast prices increase 16% (from $1,722 to $2,003). Similarly China to US East Coast prices jumped 13% (from $2,779 to $3,137).

China to North Europe prices also jumped 13% and more carriers will increase their FAK rates during the month. Coming into contract renegotiation time at this time, carriers will be hoping that spot prices stay high. With these three indexes all up, the global index also jumped this week, by 10% to $1,552.

 

Did you subscribe for our daily newsletter?

It’s Free! Click here to Subscribe!

Source: The Baltic Briefing

 

 

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.