Christmas in July for shipping lines as Trans-Pacific container rates climb
Chinese consignors open wallets to secure space before peak shopping season
TOKYO -- Spot rates on containerships bound for the U.S. from Asia have risen by a fifth since late June as Chinese and other consignors accept rate hikes to build up American inventories ahead of the Christmas rush.
The benchmark West Coast-bound rate has reached around $1,690 per 40-foot container, a level not seen in five months and up more than 50% from the most recent low in June. Rates for East Coast-bound containers come to around $2,690, up about 30% from late June.
Container shipment volumes from Asia to the U.S. rose 4.7% on the year for the January-June half to a record high, according to the Japan Maritime Center. Demand for furniture and miscellaneous goods rose on healthy consumer spending.
Containerships reach about 95% of capacity in the run-up to Christmas. Tokyo-based Mitsui O.S.K. Lines expects its vessels to be nearly full through September.
While Japanese freight consignors usually sign yearly fixed-rate contracts each spring, Chinese consignors mainly use the spot market, and some are even starting to pay premium rates to secure space, according to a Japanese shipping company.
Nippon Yusen and Kawasaki Kisen each swung to profits in their container businesses for the April-June quarter. The improvement "owed more to brisk freight movement than to better freight rates," said Noriko Miyamoto, investor relations officer at Nippon Yusen.
(Nikkei)
The benchmark West Coast-bound rate has reached around $1,690 per 40-foot container, a level not seen in five months and up more than 50% from the most recent low in June. Rates for East Coast-bound containers come to around $2,690, up about 30% from late June.
Containerships reach about 95% of capacity in the run-up to Christmas. Tokyo-based Mitsui O.S.K. Lines expects its vessels to be nearly full through September.
While Japanese freight consignors usually sign yearly fixed-rate contracts each spring, Chinese consignors mainly use the spot market, and some are even starting to pay premium rates to secure space, according to a Japanese shipping company.
Nippon Yusen and Kawasaki Kisen each swung to profits in their container businesses for the April-June quarter. The improvement "owed more to brisk freight movement than to better freight rates," said Noriko Miyamoto, investor relations officer at Nippon Yusen.
(Nikkei)
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