Normalization of container freight market is ‘not really normal’

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Xeneta’s Chief Shipping Analyst, Sten Sand, suggests that the spread between Far East and US East Coast interest rates is almost $1,000 per feu above comparable US West Coast interest rates, bringing about a return to the “normal” ratio pre-pandemic disruptions. Sand believes that the shift in freight movement to the US East Coast is a longer-term nature due to investments in infrastructure such as giant cranes, terminals, and warehousing. Emily Strausböll, Xeneta’s market analyst, stated that many shippers have confirmed they moved to the east coast and will not return to the west coast regardless of congestion, as they have already found solutions that they have passed on to their consumer base.

Sand also comments on the various ongoing US legislative initiatives, saying that “time will tell” regarding infrastructure investment packages from Capitol Hill, adding that it is a step in the right direction compared to no infrastructure package at all. Through data from Sea-Intelligence, reliability among airlines has deteriorated due to increased congestion, with the Asia to USWC runs having a reliability estimate of 42.2%, with ships arriving, on average, five days late. Strausböll notes that while reliability has also deteriorated for USEC ports, it has improved since.

Tags: America,Asia,Ports,container market


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