Shipping industry participants expect that container freight rates were approaching their peak after some carriers announced a halt in further rate increases. French shipping lines CMA CGM announced last week that it would halt any increase in spot market rates until February 2020. Germany’s Hapag-Lloyd also said it would keep its current spot rates steady for an indefinite period. However, it remained unclear whether other major shipping lines would follow suit.
Last week, the cost to ship goods from North Asia to North America’s West Coast and to Chicago by rail stood at around $22,000 per FEU, including premium services, dropping from over $30,000 per FEU several weeks earlier. Premium rates from China to North America were offered at $17,100 per FEU for the West Coast and $19,300 per FEU for the East Coast on a port-to-port basis last week.
The all-inclusive premium rate for Southeast Asia to North America’s East Coast was assessed at $19,000-$25,000 per FEU. However, some shippers paid up to $30,000 per FEU, depending on the availability and the urgency. For Southeast Asia to North America’s West Coast, premium rates were observed in the range of $16,000-$20,000 per FEU. Meanwhile, North Asia to North Continent was steady last week at $17,500 per FEU on an FAK basis.
