Asia-US container rates mixed as capacity tightens, import demand slows; tanker rates mostly higher

Container shipping rates between East Asia and the United States remain mixed this week as capacity tightens and import demand eases slightly. On the West Coast, rates range from $7,515 to $8,365 per FEU, while rates on the East Coast span from $9,600 to $11,500 per FEU, both remaining near the highest levels since mid-2022. Drewry's rates experienced a 6% drop from Shanghai to Los Angeles and a 5% decrease from Shanghai to New York.

Drewry anticipates further rate reductions next week due to the announcement of six additional blank sailings. Freight Right reported a 1% decrease in rates to the West Coast and a 0.22% increase to the East Coast. However, Freightos noted a 3% rise to the West Coast and a 9% increase to the East Coast. Container shipping is crucial for the chemical industry, as polymers like polyethylene, polypropylene, and titanium dioxide, as well as liquid chemicals in isotanks, are shipped via container ships.

Weekly rates on the Shanghai Containerized Freight Index (SCFI) and the NYSHEX Freight Index (NYFI) both edged slightly upward. US chemical tanker freight rates assessed by ICIS increased this week, particularly for parcels from the US Gulf to Europe, Brazil, and India. However, space for larger parcels remains scarce, causing rates to climb.

Demand for caustic soda, styrene, and MEG to Southeast Asia remains steady, with most players hesitant to engage due to risk and uncertainty. Despite a slight uptick in inquiries, freight rates are expected to remain pressured higher.