In International Shipping News 30/09/2016
Spot containership rates from Asia to the U.S. remain at roughly 17-month highs on growing trans-Pacific freight volume amid solid consumer spending and housing investment in America.
The benchmark fare from Asia to the U.S. West Coast has been near $1,730 per 40-foot container throughout September, spiking some 50% from an August low.
Freight demand remains strong. Goods equivalent to 10.23 million 20-foot containers were shipped during the first eight months of 2016, up 3% year on year and an all-time high, according to data compiled by the Japan Maritime Center. Demand has not weakened in September, according to a source at a leading foreign line.
Carriers have been busy shipping Chinese-made goods to the U.S. ahead of the holiday sales season. “U.S. consumer spending is supported by cheaper oil and a solid job market, while housing investment remains firm,” said Junichi Makino, chief economist at SMBC Nikko Securities. Many project the mild growth to continue.
Among U.S.-bound freight, furniture and housing-related goods such as construction tools and floor materials posted a 5% increase in the January-August period, while TVs and other audiovisual products also rose 5%. Automotive parts and tires exceeded year-earlier levels as well.
The August collapse of South Korea’s Hanjin Shipping also spurred concerns about a possible capacity shortage. Hanjin represents an estimated 7% of trans-Pacific shipping to the U.S. market, according to the Japan Maritime Center, more than Japanese peers Kawasaki Kisen and Nippon Yusen. Former customers of Hanjin are shifting their freight to other lines.
Meanwhile, spot rates from Asia to Europe are now at around $760 per 20-foot container, down about 20% from a peak in mid-September. The decline is apparently attributed in part to Hanjin’s smaller role on these routes compared with trans-Pacific ones.
Source: Nikkei
