Mainline operators are looking for a price hike in Asia-US West Coast rates in mid-August to undo the recent correction, reports The Loadstar.
Box lines set for price hikes
Hikes of $1,000 per 40ft have been announced for 15 August, by carriers hoping to halt the declines of the past three weeks.
On Friday, the Shanghai Containerised Freight Index showed Shanghai-US West Coast rates lost about 7% from the previous week, averaging $6,663 per 40ft, although this remained above the $1,943 of a year ago.
While cargo volumes continue to show very strong growth in the traditional Q3 peak season, the recent launch of new services, such as SeaLead Shipping’s AWC and various ad hoc USWC sailings, have boosted capacity on the lane by more than 15%.
Linerlytica estimates there are now 306 vessels, for more than 2.58m teu, plying the Asia-US West Coast lane, up 14% year on year.
On the other hand, Asia-US East Coast rates saw a lower drop of 2% from the previous week, averaging $9,557 per 40ft, with capacity fairly consistent from a year ago, at more than 2.75m.
Asia-Europe rates have also held up, remaining almost unchanged at $4,991 per 40ft, as tight capacity has compensated for reduced cargo volumes.
Several extra loader sailings have also been canceled. CMA CGM, which planned to introduce a French Peak Service with seven sailings through September, has reduced this to four.
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Source: The Loadstar
