Category: General
Country: United Kingdom
Container rates are also creeping up again.
By Bobby Dalheim
Senior Editor of Case Goods and Global Sourcing
15th April, 2025.
London – Spot container rates have crept up the past two weeks, rising 13% from Shanghai to Los Angeles and 10% from Shanghai to New York, according to rate tracker Drewry. Reduced capacity amid tariff uncertainty is likely the reason why.
Volumes from China are reported to be weak and uncertain, as shippers with inventory on-hand are holding bookings or arranging to pull back.
“Uncertainty across trade lanes is making it very difficult for shippers and carriers to plan for the year ahead,” said Rachel Shames, vice president of pricing and procurement for customers broker CV International, in a blog post. “In the absence of stability, shippers cannot accurately forecast volumes, and carriers cannot efficiently plan services and capacity.
“Shippers moving cargo from non-China origins may plan to pull forward volume for the second half of the year and ship it prior to July, which, as of this writing, is the end of the ninety-day reprieve,” she continued. “This could create an early peak season on certain services. Conversely, volumes from China are expected to remain very low while the current high tariffs are in place on most commodities. Ocean carriers will try to balance supply as well as possible, likely omitting China ports, ramping up blank sailings, and perhaps even combining services while the trade war plays out.”
Shames noted that despite uncertainty, contracting season is still underway.
“Carriers are mostly still holding firm on rate increases over last year’s contract rates,” she said. “Shippers need to be planning and booking May volumes now, and many contracts are likely to be executed in the coming weeks.”
Courtesy: hometextilestoday.com
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