Container freight rates for voyages from Asia to the US have been on the rise over the past three weeks, thanks mostly due to better seasonal demand and reduced liner capacity, according to an analyst.
Rates for containers getting shipped from Asia to the US West Coast have improved 27.3% since 3 July to $1,539 per feu on Monday, while rates for boxes headed from Asia to the US East Coast have risen 10% to $2,609 per feu, according to the Baltic Exchange’s Freightos Baltic Index.
“Typically, higher demand leads to higher capacity availability, but over the past month liners have focused on tightening service offerings as demand has improved,” Jefferies analyst Omar Nokta wrote in a note.
He noted that, according to Drewry Maritime Research, major liners on main trade lanes reduced sailings to 663 voyages this month from 680 sailings in June while upping blank sailings to 40 voyages from 34 sailings.
“Blanked sailings now amount to 6% of capacity, up from 5% last month,” he wrote.
“Transpacific spot rates mostly held on to recent gains last week and are starting this week steadily with limited capacity available from major operators.”
Several container liner operators are quoting freight rates for voyages from Asia to the US West Coast that are actually closer to $2,000 per feu and plan to raise them by another $500 per feu next week, he said.
Labour strife between US West Coast dockworkers and employers sporadically disrupted container throughput at some ports in recent months, but that has abated since both sides signed a tentative agreement in mid-June.
