Subscribe to our free, weekly email newsletter!

Transpacific may give peak season a pass

By Patrick Burnson, Executive Editor
September 25, 2011

Inbound figures provided by online market intelligence companies may be reliable, but they only tell part of the story.

According to London-based Drewry Shipping Consultants, spot rates on the Transpacific slid 5.6 percent last week to $1,561 per 40-foot container equivalent unit, (FEU) or 37.4 percent below their levels of a year ago.

This weekly index shows that while inbound volumes are better than expected, rate decline signals a soft peak season for pre-holiday imports from Asia.

As we have been reporting, vessel capacity continues to outpace cargo growth, leaving cargo interests with plenty of space on ships and depressed spot rates.

The Drewry index is based on spot rates reported by non-vessel-operating common carriers in Hong Kong for shipments to Los Angeles. It excludes terminal handling charges in Hong Kong but includes fuel surcharges.

The index hit its 2011 high in January at $2,119 per FEU. Last week’s index was down from last week’s $1,653.

The index bumped up to 21.5 percent to $1,853 per FEU after hitting bottom at $1,525 in early August.

There it remained, at $1,857 for two consecutive weeks before drifting lower during the last three weeks.


About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

As was the case a month ago, the Global Port Tracker report from the National Retail Federation (NRF) and maritime consultancy Hackett Associates is calling for annual import cargo volume gains at United States ports, as retailers gear up for the holiday season.

More than nine months after saying it was not for sale, Long Beach Calif.-based non asset-based third-party logistics (3PL) services provider UTi Worldwide has apparently changed its tune, with the company saying it has entered into a definitive agreement to be acquired by Denmark-based global 3PL DSV for $1.35 billion and $7.10 per share.

September carloads—at 1,417,750—were down 4.9 percent—or 72,597 carloads— annually, and intermodal—at 1,365,980 trailers and containers—was up 1.2 percent—or 16,272 trailers and containers.

Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA