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GXO: AMAZON RELATIONSHIP ON THE RADARGXO: WITH REGARD TO AMAZON RISK GXO: AMAZON RIVALRY INSIGHTAMZN: SUCCESSFUL BOND OFFERINGFDX: AI EDGEFDX: CEO ON AI BENEFITS FDX: MORE ABOUT AI UPSIDEFDX: AI POWER RULESFDX: 'GLOBAL TRADE NAVIGATOR' LAUNCHED FDX: MARKETING PUSHMAERSK: RECENT RALLY WAS NOT ENOUGH DSV: NEW LOW FOR THE YEAR DSV: FLIRTING WITH NEW LOWS
GXO: AMAZON RELATIONSHIP ON THE RADARGXO: WITH REGARD TO AMAZON RISK GXO: AMAZON RIVALRY INSIGHTAMZN: SUCCESSFUL BOND OFFERINGFDX: AI EDGEFDX: CEO ON AI BENEFITS FDX: MORE ABOUT AI UPSIDEFDX: AI POWER RULESFDX: 'GLOBAL TRADE NAVIGATOR' LAUNCHED FDX: MARKETING PUSHMAERSK: RECENT RALLY WAS NOT ENOUGH DSV: NEW LOW FOR THE YEAR DSV: FLIRTING WITH NEW LOWS
Container spot freight rates on the main east-west trades continued in much the same vein as they have since the beginning of August – slight declines on Asia-Europe trades offset by slight increases on the transpacific.
This week’s World Container Index (WCI) by Drewry showed rates remaining elevated on the transpacific, with its Shanghai-Los Angeles leg up 2% week on week, to $7,352 per 40ft, while the Shanghai-New York route climbed just 1%, to $9,726 per 40ft.
Drewry said it expected transpacific freight rates to remain stable next week, with eight blanked sailings due, compared with seven this week, expected to mitigate the easing demand.
However, with China’s Golden Week holiday due in less than three weeks, the “stable” rates are also expected to remain elevated, according to US west coast forwarder Freight Right.
“Overall, demand remains strong and carriers have been able to maintain September pricing without significant movement.
“The current market increasingly looks like an extended peak season that began earlier than usual this year and could leave ocean rates elevated through the end of September,” it said.
Another factor is the growing backlog of export cargo in China, a result of four separate typhoons in the space of just seven weeks – Linerlytica reported this week ships were now waiting up to 12 days for a berth in Shanghai and Ningbo, and would likely mean two things: shipping operations during Golden Week will be crucial to clearing some of this backlog; and consignees in Europe and North America can expect to see a prolonged period of “bunched” vessel arrivals through October.
There could even by a sharper increase in transpacific spot rates if other carriers follow the lead of CMA CGM, which this week announced a 1 October introduction of peak season surcharges (PSSs) of $4,000 per 40ft from both the Far East and Indian subcontinent to the US west coast, and $10,000 per 40ft from the Indian subcontinent to the US east coast.
On the Asia-Europe trades, prices continued their downward trajectory: the WCI’s Shanghai-Rotterdam leg fell 2%, to $3,997 per 40ft, while the Shanghai-Genoa route was down 3%, to $4,216 per 40ft.
According to Drewry’s Container Capacity Insight, three blanked sailings are set for next week, up from one this week, but the tighter capacity is unlikely to reverse the rate trend, European forwarders told The Loadstar.
“The peak is pretty much behind us,” one said.
“One useful indicator is when you see carriers place a time limit on the validity of their FAK pricing, as is the case now, because in my experience they don’t normally increase prices before that period expires, which means that’s pretty much it in terms of price rises until after Golden Week – for the Asia-Europe trades, at least,” she added.
However, European shippers on the transatlantic continue to face pricing pressure: the WCI’s Rotterdam-New York leg was up 3% week on week, to finish at $3,126 per 40ft, and is now 100% higher than it was at the outbreak of the US-Iran conflict.
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