The mystery of the frozen trans-Pacific spot rates

The spotlight is on spot rates from Asia to California (Photo: Jim Allen/Freightwaves)

Historically strong Asia-U.S. container demand has fluctuated since mid-September. The numbers change from week to week and month to month. It’s not as if trans-Pacific demand hit a peak 10 weeks ago and froze in place.

The strange thing is that spot index rates did exactly that. 

Rates differ slightly based upon which source you look at, whether it’s the Shanghai Containerized Freight Index (SCFI), Freightos or Drewry’s. But the pattern is the same. 

As of Monday, the Freightos Baltic Daily Index assessed the Asia-West Coast (SONAR: FBXD.CNAW) spot rate at $3,875 per forty-foot-equivalent unit (FEU). It has been within a few bucks of that number since the second half of September.

spot rates chart

“It is worth highlighting that this is the first time we have ever seen a flat development,” said Patrik Berglund, CEO and co-founder of freight-rate intelligence company Xeneta, during a company presentation on Tuesday.

To continue reading this article...

Already have an account? Sign In

Create a Free Account

No payment required

By signing up with your email, you will receive newsletters, special offers, and occasional third-party promotions from FreightWaves.com and its family of brands.

    Need Help? Contact Us

    Greg Miller

    Greg Miller covers maritime for FreightWaves and American Shipper. After graduating Cornell University, he fled upstate New York's harsh winters for the island of St. Thomas, where he rose to editor-in-chief of the Virgin Islands Business Journal. In the aftermath of Hurricane Marilyn, he moved to New York City, where he served as senior editor of Cruise Industry News. He then spent 15 years at the shipping magazine Fairplay in various senior roles, including managing editor. He currently resides in Manhattan with his wife and two Shih Tzus.