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

image
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

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

Comments

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