- Pre-holiday frontloading to pressure vessel space.
- Equipment issues in Asia keep box pool thin.
A recently published news article in the Platts states that Trans-Pacific all-inclusive rates primed for rebound ahead of LNY.
Trans-pacific rates set to jump
All-inclusive container rates on the trans-Pacific route are set to jump again ahead of the Lunar New Year holiday in February as retailers engage additional inventory replenishment.
Market sources expect a renewed flurry of booking activity beginning in late November and through December as US importers aim to beat the Lunar New Year production and export slowdown in China.
This is likely to lend further support to freight rates, which could result in a return of escalated premium levels seen during the August and September peak period.
One carrier source said that their volume expectations had increased for the November-January period and expects significant space premiums to begin during the week of Dec. 6.
“We’re seeing quite some demand, particularly from big box retailers, who need to move cargos out before January,” the source said. “They have asked us for large premium services which is putting pressure on space available.”
All-inclusive premium bookings from North Asia
During the week ending Nov. 19, S&P Global Platts heard all-inclusive premium bookings from North Asia to the USEC as high as $20,000/forty-foot equivalent unit, but most remained around the $14,000/FEU level.
Into the US Pacific Coast, rates remained steady at or just above $10,000/FEU, as more capacity relative to the Atlantic Coast kept a lid on rates.
“From here through Lunar New Year, space is going to remain tight, and there’s not really going to be an opportunity for shippers to get lower rates, and a resumption of more bookings under the premium classification,” a US-based freight forwarder told Platts. Rates have already begun to inch up, the source added, as carriers have begun to allocate less space on FAK and more on premium bases.
Vietnam equipment shortage supports SEA rates
Premium rates on the Southeast Asia-North America route were largely rangebound during the week ended Nov 18 as lower factory production in China has eased up the supply pressure.
However, persistent equipment shortage in Vietnam prevented a fall.
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Source: Platts
