That didn’t take long.
Container freight rates out from China to the United States are surging after the trading partners agreed to pause tariffs.
Freight rates from Shanghai to New York surged 19% or $704 to $4,350 per 40-foot container, and those from Shanghai to Los Angeles shot up 16% or $423 to $3,136 per 40-foot container, according to maritime consultant Drewry.
Rates from New York to Rotterdam, Netherlands, Europe’s busiest port, increased just 1% or $10 to $824 per container. Prices from Shanghai to Rotterdam, Shanghai to Genoa, Italy, and Rotterdam to New York fell 1% to $2,035, $2,742 and $1,961, respectively. Rates from Rotterdam to Shanghai and Los Angeles to Shanghai were unchanged.
In a note, Drewry said it expects an increase in trans-Pacific spot rates in the coming week due to a shortage in capacity following the latest U.S.-China trade developments.
The Drewry World Container Index composite prices increased 8% to $2,233, 78% below the previous pandemic peak of $10,377 in September 2021. However, the index was 57% higher than the average $1,420 in 2019, pre-pandemic.
The average YTD composite index closed at $2,746, $151 lower than the 10-year average of $2,896 inflated by COVID in 2020-2022.
Find more articles by Stuart Chirls here.
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