Trans-Pacific shippers ‘leaving money on the table,’ says analyst
Shippers are leaving money on the table, an analyst says, if they don’t consider switching coasts for Asia import containers. The post Trans-Pacific shippers ‘leaving money on the table,’ says analyst appeared first on FreightWaves .
Analyst Peter Sand of Xeneta has warned that shippers are "leaving money on the table" by not importing goods into U.S. West Coast ports. Despite the rising spot rates, the price difference between the West and East Coasts is significant. Sand explained that importing into the U.S. West Coast is $3,334 per forty foot equivalent unit (FEU) cheaper than the East Coast.
This compares to the pre-crisis rates of $1,879 per FEU into the West Coast and $2,651 into the East Coast. The surge in demand since the Iran war on February 28 has driven up prices, with the SONAR Ocean Booking Index showing a steady increase. Sand noted that carriers are using their negotiating strength amid strong demand and increased blank sailings, causing spot rates to rise almost 300% compared to pre-crisis levels.
The congestion caused by typhoons and the growing demand in key Asia ports is exacerbating the situation. While European trade rates are softening, Sand advises U.S. shippers to look towards Europe for lower rates, as carriers show they are not invincible and rates are still increasing in the U.S.
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