Trans-Pacific rates soar, Mediterranean sinks, and demand doesn’t explain either
Rates are once again a poor indicator of demand in the maritime space. Comparing data on the Mediterranean and trans-Pacific lanes highlights this. The post Trans-Pacific rates soar, Mediterranean sinks, and demand doesn’t explain either appeared first on FreightWaves .
Freight costs from China to North America West and the Mediterranean have diverged dramatically in recent weeks. While rates to the US West Coast surged to nearly double their 12-month average, the route to the Mediterranean fell more than 50%. Despite booming bookings to Mediterranean ports, the price gap suggests supply factors are at play.
Chinese carriers have been switching routes away from the Cape of Good Hope and away from slower Cape-diversion routes, freeing ships that had been tied up. At the same time, carriers have been adding blank sailings and are rejecting fewer West Coast bookings than a year ago, indicating capacity rationing through price rather than a shortage of ships.
If the Mediterranean is any guide, trans-Pacific freight rates may tumble quickly even as bookings stay strong.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
