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FCL rate reference and airfreight market rate reference in Week 31

02 Aug 2022

By Richie Lin.     Photo:Fred

The GDP growth rate of USA in second quarter is minus 0.9% and first quarter was minus 1.6%. This shows the economy of USA shrank for second consecutive quarter, which meeting the criteria for a so-called technical recession just when raging inflation and higher interest rates forced consumers and businesses to restrict on their spendings. In the past several months, we are just talking about the economy was slowing down because of higher consumer prices and higher oil prices. But second consecutive minus GDP growth rate is a warning to remind us that the economy will not get better for a very short time, at least not within this year. Traditionally, shippers would start to require more containers at the beginning of third quarter for the preparation of selling seasons in Halloween, Christmas and New Year. And the ongoing port congestions, shortage of labors and equipment in railroads have pushed suppliers to arrange earlier if they have much more requirements from wholesalers and retailers. Since it would take one month from Asia to west coast, two months to east coast and more than two months to IPI ramps, the containers should be onboard within August if the products want to be on shelves of stores on time for sales in buying season. But we didn’t see the sign of peak season in July and no sign of reversing in the beginning of August. We can be pretty sure that the market will not be as hot as last year. People will still consume and importers will still need containers from Asia but the volumes will be cut around 15~20 percent compared with last year. Decreasing consumption demand really drags down the request of ocean freight and airfreight transportation, but the transit time is far from improved because of labor and equipment shortage in ports and railroads. The danger of strike at Los Angeles has been eased because of progress of negotiation between ILWU and PMA. But we keep seeing strikes and possible strikes are looming different aspects in the global supply chain under the high inflation rate. This will give shipping lines reasons to use blank sailings for maintain current rate level or slow down the dropping speed.

 

Ocean FCL market rate reference in week 31:

  • Asia main ports to USAWC USD 6500~9000 per 40GP; 
  • Asia main ports to USAEC USD 10000~11000 per 40GP; 
  • Asia main ports for IPI points of USA is USD 12500~14500 per 40GP. 
  • Asia main ports to Europe base ports and West Mediterranean: USD 10000~14000 per 40GP.  

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 7,000~14,500 per 40GP for different destinations.

   

Airfreight market rate in Week 31:

Airfreight rate might increase abruptly without further notice. The following market rate for your reference. 

  • PVG/SZX/HKG/TPE to LAX USD 9.3/kg, 
  • PVG/SZX/HKG/TPE to ORD USD 10.6/kg, 
  • PVG/SZX/HKG/TPE to JFK USD 8.7/kg.

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