China-USA freight rates relax grip
In its current analysis, New York-based intelligence provider and digital freight forwarding company Shifl notes that China-US spot freight rates have passed their peak over the last four weeks.
With Chinese manufacturers slowing down production with the off-season coming into view, competition for freight capacity in terms of containers and vessel space has calmed down.
Thus, the spot rate for shipping a feu from China to Los Angeles dropped by USD 9,000, or 51.4% between September and October of this year, from a high of USD 17,500 to USD 8,500. The rates for traffic between China and the US East Coast also fell significantly.
Yet, Shifl warned in a recent press release: "This temporary reprieve could soon be overshadowed by a growing backlog of unfulfilled orders." Inventory shortages and price increases might take their toll. Shabsie Levy, founder and CEO of Shifl, commented: “These rates could go even lower. We’re already seeing long-term rates for shipping 40-foot containers from China to USA go below USD 5,000.”
Besides its headquarters in USA, Shifl maintains offices in China, India, Vietnam, Bangladesh, Georgia and the Philippines. (sh)