East-West Spot Rates Stabilise
East-west spot rates stabiliseMOVEMENT on the spot market is anticipated to be minimal in the coming week on the east-west majors, as rates prolonged their period of stability.
According to MANA, The latest Shanghai Containerised Freight Index shows that transpacific rates have held firm in the wake of their latest general rate increases, representing a second price push in as many weeks, amid a last-minute rush of pre-Chinese New Year cargo.
On the Asia-US east coast trade, rates even climbed above last week’s level by 1.5%, to $3,647 per loaded 40 ft unit, to reach their highest level since April 2015.
Freight rates on services calling the US west coast from Asia fell slightly to $2,167 per feu, down 2%, according to the SCFI.
Drewry’s Hong Kong-Los Angeles spot rate index strengthened by 4% this week to $2,361 per feu.However, there is greater cause for optimism than in the recent past.
In a webinar earlier this week, Drewry said that there was now a much better spot rate environment today compared with the first half of 2016, when rates slumped to low and unsustainable levels.
Despite relaying the concerns of a return to volatility amid threats to both the demand and supply sides, Drewry said that with the industry on a better footing the immediate outlook was brighter.