In International Shipping News 24/03/2015
The cost to ship containers from Asia to the U.S. East Coast has declined 12% from the recent peak in mid-February now that a prolonged dispute over dockworker wages on the West Coast has effectively ended.
The spot price has fallen to around $4,400 per 40-foot equivalent unit (FEU).
The labor dispute disrupted the flow of seaborne trade, causing fees for shipping from Asia to the East Coast to rise since last December. The rate surpassed $5,000 per FEU in mid-February for the first time since the current freight-rate calculation standards were introduced in October 2009. While prices have declined since, they are still more than 30% higher than a year ago.
The situation is slowly returning to normal. Cargo-handling capabilities have improved since the end of February at key West Coast ports, according to a Los Angeles port official. And shipping companies are trying to make up for delays by such measures as having their container ships make fewer stops. Still, the widespread view is that port functions on the West Coast will not fully recover until April.
