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.

News ID: 71775

Date: 22 January 2017 - 11:56

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.