We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » U.S. import box rates continue fall despite solid U.S. traffic flows
Forward Thinking

U.S. import box rates continue fall despite solid U.S. traffic flows

October 16, 2017
Supply Chain Quarterly Staff
No Comments

Container shipping rates into the U.S. are on a downward spiral even as volumes into U.S. port gateways remain solid, a sign that vessel overcapacity is trumping stronger demand and the impact of carrier alliances designed to rationalize ship space, according to data released by Freightos, a Hong Kong-based online quote portal.

Weekly spot, or non-contract, rates for 40-foot equivalent unit (FEU) containers from China to the U.S. East Coast fell 5 percent week over week—and 17 percent year over year—to $2,017 per FEU. Rates from China to the U.S. West Coast dropped 1 percent week over week—and 15 percent year over year—to $1,450 per FEU. Rates from Europe to the East Coast fell to $1,133 per FEU, down 12 percent week over week and 19 percent year over year.

The year-over-year rate data was skewed by the sudden August 2016 collapse of Korean liner Hanjin Shipping Co., at the time the world's seventh-largest container line. Hanjin's abrupt exit took out 3 percent of global container capacity, sending spot rates soaring and keeping them elevated for the rest of 2016. Rates last October were about 15 percent higher than they are today, according to Freightos estimates.

Still, prices have been declining nearly across Freightos' index board since they peaked between mid-January and early February. Rates on the China-U.S. East Coast trade lane have fallen for seven consecutive weeks. Export prices from China have declined for eight consecutive weeks, with the exception of eastbound rates into the U.S. during the first week of September and the first week of October.

The continuing fall in box rates comes as container lines enter what is traditionally the busiest period of the holiday shipping season. At what should be a peak of the pricing cycle, seven key trade lanes are tracking below their high points for the year, according to Freightos data. These include China to the U.S. West Coast at 70 percent, China to the U.S. East Coast at 56 percent, and Europe to the U.S. East Coast at 73 percent, Freightos said.

  • Related Articles

    NRF says U.S. economy will continue growth despite end of stimulus spending

    Ocean import traffic seen growing through summer despite tariff threats, report says

    Forecast says U.S. drayage rates will continue to rise in Q1

Recent Articles by Supply Chain Quarterly Staff

Kearney launches “supply chain institute” as more companies seek resilience plans

Trucking industry lobbies for leverage in transition to zero emissions

Safety will be top of mind on National Forklift Safety Day 2023

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

  • Inflation drops again as interest rate hikes hit home, NRF says

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing