Volatility in global ocean container supply chains means it is not often both shippers and carriers are ‘happy’ with the price they are buying and selling freight, but that is seemingly the case on Transpacific trades.
Xeneta analyst insight
Peter Sand, Xeneta Chief Analyst:
Elevated Transpacific ocean freight rates plateau:
“Volatility in global ocean container supply chains means it is not often both shippers and carriers are ‘happy’ with the price they are buying and selling freight, but that is seemingly the case on Transpacific trades as average spot rates plateau at elevated levels amid ongoing conflict in the Middle East.
“Average spot rates from Far East to US West Coast remain up more than 50% compared to pre-conflict at the end of February, but have remained effectively flat over the past month.
“One factor behind the short term market plateau on the Transpacific is US shippers delaying signing new long term contracts due to the uncertainty caused by the Middle East crisis and the risk of locking in rates for the next 12 months at a higher level than necessary. For every delayed contract, more containers must be moved on the spot market and carriers will charge a premium – but for shippers, the short term pain is worth it if they ultimately secure lower long term rates in the coming weeks. (....)