PeerPlusTM LOGIN
QUICK TRACK

Transpacific Eastbound Market Update

December 4, 2017                                                                                                                                                                                                                                                                                                                                                                                                                                                      

To Our Valued Customers: 

 

Market Conditions The recent strong transpacific market is beginning to slow which is norm after the holiday season cargo rush that runs through October.  This year the west coast capacity remained rather robust with high ocean carrier utilization ratios above 90% through the month of November.  East coast capacity continues to face lower utilization ratios ranging mostly in the mid 80% range and we expect this trend to continue until the annual pre-Chinese New Year cargo rush.  Chinese New Year is a little late this coming year (February 16th) and capacity will most likely not tighten up until late December or early January.           

 

 Blank Sailings: 

-           Ocean Alliance will have a blank sailing on their PSW service that will skip Xingang 12/7, Qingdao 12/9 &

     Shanghai 12/11 that serviced Prince Rupert, BC, Long Beach, CA & Oakland, CA

-           THE Alliance will skip Shanghai 12/20 on their PS5 service that was scheduled to call Los Angeles, CA

-           THE Alliance will skip Dalian on 12/31 on their PS8 service that was scheduled to call Los Angeles, CA

              

General Rate Increase -  Ocean carriers have announced a substantial rate increase of $1000/40’ for January 1st 2018 on anticipated strong demand prior to Chinese New Year.  It’s highly unlikely a rate increase of such an amount would be sustainable however carriers must file rate increases 30 days in advance as per the Federal Maritime Commission.  We do feel, however, that with anticipated high demand prior to Chinese New Year carriers will be successful in obtaining some rate increases early in 2018.

      

Peak Season to test US infrastructure – The2017 peak season will be many ports, chassis providers, dray carriers & BCO first true test on capabilities of handling the large vessels deployed on Transpacific Eastbound trade arriving at 100% of capacity.  The East Coast infrastructure specifically will be tested since it wasn’t too long ago that vessels of less than 5,000TEU was the norm.  The average Transpacific Asia-East Coast vessel today exceeds 8,000TEU with some vessels over 13,000TEU deployed in the market.  Many stake holders will be closely watching.

 

2018 1st Quarter BAF & LSF: 

2018  1st Quarter BAF tariff amount  (Jan 1 - Mar 31)

WC   $303/ 336/ 378/ 425  (increase by $22/24/27/30 from last quarter)

IPI     $497/ 552/ 621/ 699  (increase by $55/61/68/77 from last quarter)

EC    $581/ 645/ 726/ 817   (increase by $44/48/54/61 from last quarter)

 

2018  1st Quarter LSF tariff amount  (Jan 1 - Mar 31) 

WC/IPI   $26/29/33/37     (increase by $7/8/9/10 from last quarter)

EC           $10/11/12/14     (previous quarter LSF was $0 )

 

Thank you very much for all your support.

BROWSE MORE ARTICLES

E-MAIL TO COLLEAGUE

NOTIFY ME WHEN NEW ARTICLES ARE POSTED

SOUND FAMILIAR? HAVE A SLIGHTLY DIFFERENT ISSUE? CONTACT US

Have the News Delivered to you

Like what you see here? Why not let us send it directly to you?
Sign up to receive our Weekly Industry Newsletter, a compilation of all news articles that matter to you and your business.