Here’s the latest China-US container prices, some Freightos.com data on which countries saw importers working right through the holiday, and a little more color on the year in review.
The Data
• China-US West Coast prices (FBX01 Daily) slid by 1% since last week to $1363/FEU. Prices are 18% behind last year’s rate.
• China-US East Coast prices (FBX03 Daily) are $2603/FEU, also down 1% from last week. This rate is just 3% below this week’s price last year.
Workaholic Importers…
It wasn’t only Santa shipping on Christmas. Freight quote search volumes on Freightos.com’ freight marketplace found that the most workaholic small businesses are located in… the UK: searches for instant freight quotes by shippers in the UK dropped by only 29% on Christmas day, compared to a 70% drop for US shippers and 80% for Canadians. And even for people that took a well-deserved break, it was right back to work the next day, with near records for daily booking volumes on December 30th, likely to beat an early Chinese New Year cutoff date.
China-US Imports
As we close out a turbulent 2019, container imports to the West Coast are down some 10% from last year. And even if tariffs are reduced or rescinded, the trade war effect will likely still be felt into 2020.
This week’s activity is a case in point. China-US rates remained mostly unchanged, at about $1,360/FEU, as neither pre-Chinese New Year demand or fuel costs could prop up prices. In response, by volume, carriers are planning the most post-Chinese New Year blank sailings in seven years. For some shippers, in addition to higher prices, this reduction could mean warehouse bottlenecks and overall longer transit times.
Though volumes are down, it’s interesting to note that overall prices actually tracked with typical seasonal patterns. And though China-US prices were down overall compared to 2018, much of that difference can be chalked up to last year’s rush to beat out tariffs and the accompanying spike in prices.
