Asia-US container rates surge on extended peak season demand; liquid tanker rates mixed

Container rates from East Asia and China to the US have surged this week due to heightened peak season demand and carrier-imposed capacity restrictions. Rates to the US West Coast range between $7,075-$8,330/FEU, while rates to the East Coast are between $9,165-$12,000/FEU, marking the highest levels since mid-2022. Robert Khachatryan, founder and CEO of Freight Right Logistics, attributes the tight capacity to carriers maintaining firm control over available space with blank sailings and booking rollovers.

However, Khachatryan's top concern is the unreliability of vessel schedules, as shipments can see their departures pushed back several days. Freightos rates increased by 3% to the West Coast and 2% to the East Coast, while other carriers are not expected to raise October rates. SCFI and NYFI indices rose by 0.7% and 7.5% respectively, representing a 20% increase over the past week.

Container ships transport polymers, like polyethylene and polypropylene, along with liquid chemicals in isotanks. In contrast, liquid tanker rates ex-US Gulf are mixed, with transatlantic rates slightly decreasing due to the end of the summer slowdown. Most regular carriers report pockets of prompt space and ample space for September, potentially further pressuring rates.

Methanol and caustic soda dominate the market, with contract of affreightment (COA) volumes remaining steady, preventing further rate increases.