Container Shipping Quarterly

Special Report

Post-CNY trans-Pacific spot rate drop belies sturdy market

By Bill Mongelluzzo and Michael Angell

Sometimes a decline isn ’ t really a decline . In the trans- Pacific container trade , for example , spot rates have been falling as they do nearly every year after annual Lunar New Year celebrations , but the seasonal slide belies relatively strong market fundamentals .

Coming into the Lunar New Year holidays , which began Feb . 10 , spot pricing was much higher than at the same time last year , so even after a sizable drop , it remains well above the levels seen in 2023 .

Vessel supply continues to be constrained by disruptions at the Suez and Panama canals , and there are strong signs for demand growth ahead . US imports from Asia have surpassed expectations in early 2024 , and retailers have significantly upgraded their projections for import volumes through the first half of the year .

As a result , US retailers have been slow-walking annual service contract negotiations , according to sources familiar with the talks .

Spot rates from Asia to the US West Coast slipped to $ 3,120 per FEU as of March 22 , while rates to the East Coast fell to $ 4,380 per FEU , down $ 1,480 and $ 2,120 from their respective peaks in February and the lowest for both since mid-January , according to Platts , a sister product of the Journal of Commerce within S & P Global . www . joc . com April 8 , 2024 | Journal of Commerce 11