Freightos Baltic Container Report – Week 41

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On October 15, some ocean carriers have applied a mid-month GRI for China-US West Coast in the $200-$400 range. That should translate into about a $200 price increase next week.

Fall in prices

After several large carriers cut FAK rates on the China-North Europe, prices fell heavily for four weeks, finally levelling off this week. At $1,486, they are 2/3rds of where they were five weeks ago.

This dramatic drop in China-North Europe (coupled with a corresponding 12% drop in China-Mediterranean prices) has dragged global container index prices down 8% over the past five weeks.

This week’s report

Week 41Week 40Last year*
Global$1,598-1%34%
China-US West Coast$2,3251%64%
China-US East Coast$3,451-1%75%
China – North Europe$1,4860%6%
North Europe – US East Coast$1,82621%46%
* Compared to the corresponding week in 2017

Transpacific prices have barely moved in recent weeks because of the Golden Week holiday.

That will change next week when mid-month GRIs in the $200-$400 range applied by some carriers kick in. That should translate into about a $200 price increase next week.

Services cut

Carriers operating on the China-North Europe lane had cut services in October to bring supply back closer to demand. Subsequently, this effort was undermined by several carriers cutting their FAK rates. Prices dropped by a $715 over four weeks – from $2,201 on September 9 to $1,486 last week. They have now leveled off, coming in at $1,486 again this week – 2/3rd of the price five weeks ago.

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Source: The Baltic Briefing