Freightos Baltic Container Report – Week 8, 2019

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The Baltic Briefing has released a report about the freightos baltic container of the 8th week of shipping activities of this year. The report highlights the plight of the container market at the on-sight of the 8th week.

Prices bounce back

  • Following Chinese New Year, transpacific ocean prices are back to where they were at the beginning of the year.
  • At $2,009, China-West Coast prices are just $6 higher than on January 6. At $3,110, China-East Coast prices are $27 lower.
  • Demand seasonally drops after Chinese New Year and freight prices take a tumble.
  • China-West Coast prices dropped 25%, East Coast 22%, in the three weeks following last year’s holiday. In 2017, those same dips were 17% and 12%, respectively.

This week’s report

Week 07 Week 06 Last year*
Global $1,570 3% 19%
China – US West Coast $2,009 0% 42%
China – US East Coast $3,110 -2% 13%
China – North Europe $1,723 2% 0%
* Compared to the corresponding week in 2018

Low rates

  • With China still returning to work after the Spring Festival holiday, China-West Coast prices did not move a cent last week.
  • Carriers canceled their mid-month General Rate Increases (GRIs), and new prices coming in this week are at lower rates.

Carriers fare better 

  • Carriers are still a lot better off (42% better off) than this time last year when China-West Coast stood at $1,442.
  • Blank sailings this month, including 2M’s last-minute addition of another ship on the AE10/Swan loop, may help cushion the fall a little bit.
  • Another cushion, that will likely have more impact mid-year, is the probable increase in ship demolitions, spurred by IMO’s new sulphur emissions regulations.
  • Carriers have devised different surcharge structures to help recoup costs incurred by those new regulations.
  • That will complicate current Beneficial Cargo Owner (BCO) annual contract negotiations on the transpacific lane.

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Source: The Baltic Briefing

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