Asia-US Container Rates Drop Further

Asia-US Container Rates Drop Further, Decline Continue After the ILA Strike

HOUSTON: Container shipping rates from East Asia and China to the US have continued to decline following the resolution of a brief three-day strike at US Gulf and East Coast ports.

The International Longshoremen’s Association (ILA) strike led to minimal disruption, with analysts predicting that the backlog will be cleared in two to three weeks, or even sooner at the Port of New York/New Jersey.

Some ports have extended gate hours to facilitate faster container delivery and pick-up. Additionally, peak season volumes have been largely front-loaded, contributing to the rate decrease.

Nathan Strang, the US Southwest director of ocean freight at Flexport, reported that terminal and railroad operations are running smoothly. He mentioned that while all detentions and demurrage rules set by the Federal Maritime Commission (FMC) remain in place, the time frames for these measures resumed on October 7, following the end of the strike.

In terms of container shipping rates, global averages continue to decline, as noted by several analysts. Supply chain consultancy Drewry’s World Container Index (WCI) is currently at $3,349 per FEU (40-foot equivalent unit), reflecting a 4% decrease.

Additionally, Drewry reported a 5% drop in container rates from Shanghai to Los Angeles and a 3% decrease for shipments from Shanghai to New York.