Freightos Baltic Container Report – Week 48

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Report Highlights

Transpacific ocean freight peak season has been a bonanza, with prices still more than double last year. However, carriers cancelled the 1 December General Rate Increase (GRI), doubting if the demand would stay up. This week, West Coast prices are down $254, while East Coast prices are down $177.

Front-loading from China

“Many importers from China front-loaded in advance of the 1 January scheduled increase to the 10% trade tariff. That boosted transpacific peak pricing, but there is a limit as to how much front-loading you can, or should, do. With the majority of pre-Christmas demand now largely over, prices have faltered recently”– Zvi Schreiber, CEO, Freightos.

Weekly Report

Week 48 Week 47 Last year*
Global $1,589 -3% 56%
China – US West Coast $2,198 -10% 128%
China – US East Coast $3,601 -5% 123%
China – North Europe $1,477 1% 11%
North Europe – US East Coast $1,515 0% 34%
* Compared to the corresponding week in 2017

Trend till CNY

Now that the tariff increase has been given a 90-day reprieve, transpacific prices should continue trending downwards, in all likelihood up until Chinese New Year (CNY).

Although transpacific prices dropped this week (West Coast from $2,452 to $2,198, East Coast from $3,778 to $3,601), they are still more than twice the price of this time last year.

This week marks the 18th week in a row that China-East Coast prices have been above the $3,000 mark. For China-West Coast, it’s the 17th week prices have been higher than $2,000, although this run will likely end next week.

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Source: Baltic Briefing

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