Market Update October 2, 2017
Trading conditions remain volatile in the Trans-Pacific import market. The anticipated historical peak season was short lived with volume near achieving levels that exceeded supply. Although one could anticipate a spike in volume prior to Chinese New Year, USPTI anticipates the market to be at best relatively flat for the next several months. Although ocean carriers continue to forward file increases we do not anticipate demand for carrier services to improve and therefore also anticipates rate to remain flat. Supply and demand will continue to drive the market with supply typically exceeding demand in any given week thereby creating a competitive environment as carriers attempt to protect market share.
USPTI is committed to providing quality and reliable services at market driven rates and will keep each client updated as market conditions and rate change.
World Container Index: Drewry assessment on Thursday, 28 September 2017
The composite index is down by 4.9% this week and down by 6% from the same period of 2016.
The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,527/40ft container, which is $101 lower than the five-year average of $1,628/40ft container. It is also 6% lower than a year ago.
The rates have dropped ahead of the Golden Week holidays in China. The World Container Index (WCI) between Shanghai and Rotterdam lost another $54 for a 40ft box this week to reach $1,1397. Similarly, the rates from Shanghai to Los Angeles dropped by $82 to reach $1,464 per feu and the rates on Shanghai-New York declined by another $154 to reach $1,981 per 40ft box. We expect the rates to fall further next week on account of the Chinese factory shutdown.
Spot freight rates by route – assessed by Drewry