- Fourth round of trade talks held in Madrid.
- FBX01 (China to US West Coast) dips to $1,728, now $2,295.
- FBX03 (China to US East Coast) falls to $2,703, now $3,630.
Exports from China to the United States took a significant hit in August, dropping by a third. At the same time, Chinese and American negotiators were busy with their fourth round of discussions last weekend in Madrid. Whether these talks will result in a fair agreement that works for both parties is still up in the air, reports Baltic Exchange.
Freight Rates on US West Coast Routes
The FBX01 route, which connects China and East Asia to the US West Coast, kicked off in August at $2,369 but saw a decline to $1,728 by the end of the month. Since then, it has been bouncing around the low $2,000s, closing today at $2,295.
Freight Rates on US East Coast Routes
The FBX03 route, linking China and East Asia to the US East Coast, followed a similar trend. It started in August at $3,705, dipped to a low of $2,703 by the end of the month, and is currently sitting at $3,630.
Declines on European Routes
European routes have faced a sharper and more prolonged drop. The FBX11 route to North Europe fell from $3,457 at the beginning of August to just $2,137 today, a staggering decline of $1,320 in just seven weeks. Meanwhile, the FBX13 route to the Mediterranean dropped from $3,206 in early August to $2,351 today, down $855.
Possible Influence of Upcoming US Tariffs
Interestingly, while European routes have been steadily declining, the key US-bound routes, FBX01 and FBX03, have managed to stabilise. This could be a sign that preparations are underway for the USTR port fees set to kick in next month.
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Source: Baltic Exchange
