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 41 | Week 40 | Last year* | |
| Global | $1,598 | -1% | 34% |
| China-US West Coast | $2,325 | 1% | 64% |
| China-US East Coast | $3,451 | -1% | 75% |
| China – North Europe | $1,486 | 0% | 6% |
| North Europe – US East Coast | $1,826 | 21% | 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
