This week’s container freight update covers the average capacity and blank sailings on the Far East to the US West Coast while we head into the not-so-traditional peak season.
The average capacity offered from the Far East to the US West Coast has fallen to its lowest since February in the past four weeks. Over this period, an average of 275 000 TEU has left the Far East heading for the US West Coast, about 50 000 TEU less than the peak in early August.
Compared to the same four weeks in 2021, the capacity offered is down by 13%, the equivalent of removing 21 ships of 8 000 TEU, which is the average size of ships on this trade. So far this year, capacity offered from the Far East to the US West Coast is just over 600 000 TEU lower than in the same period last year (-5.4%).
Latest trends in air freight rates and volume share between spot and long-term markets – https://www.xeneta.com/blog/xeneta-air-freight-rate-update-august-2022-0
In mid-September, average air freight rates from the Asia Pacific to Europe and the Middle East stood at USD 5.59 per kg, witnessing a 21% fall from the peak at the start of this year.
As air cargo demand fell, the spot rate for shipping capacity that freight forwarders procure from the carriers fell below long-term rates for the first time in over two years. At the same time, the gap between spot and long-term rates narrowed.
In the first weeks of September, the air cargo spot rate from the Asia Pacific ticked up slightly to reach USD 5.52 per kg from its recent dip of USD 5.34 per kg in the last week of August. Still, it remained below long-term rates (USD 5.58 per kg) during the first two weeks of September.
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