With the advent of September, container freight rates on the benchmark Asia-West Coast North America trade route have started show signs of differentiation.
Smaller shippers are paying more in the spot market, while larger importers are pressuring carriers to lower rates, according to consulting firm Xeta.
As of Sept. 4, the average spot rate in the container market for moving freight from the Far East to the U.S. West Coast was $,010 per FEU, while the average spot rate for moving freight to the U.S. East Coast was $2,976 per FEU. Since, average spot rates in the container market for moving freight from the Far East to the U.S. West Coast and East Coast have been steadily declining, but in September there has a reversal. Further analysis found that the high end of the market exhibited rates from the Far East to the U.S. West Coast at $2,414 per FE, up 29.2% from the previous week; and from the Far East to the U.S. East Coast, rates were $3,398 perU, up 15.2%. At the low end of the market, rates from the Far East to the U.S. West Coast were $1,65 per FEU, up 2.2%; and from the Far East to the U.S. East Coast, rates were $2,564 per FEU, just 0.5%.
Shippers tend to pay higher spot rates for a variety of reasons to ensure their cargo moves.
"Dramatic changes have in the front-haul portion of the market from Far East to USA," Peter Sand, Xeneta's chief analyst, said in a note to customers. "The spot rate into the U.S. West Coast is up 9.4% from a week ago, but there are a lot of sub-plots within that average price. dramatic change is in the premium market up 29.2% from a week ago."
Meanwhile, prices in the low end of the market are up just2.2%. That suggests that different shippers are being affected differently. Typically larger volume shippers that occupy the low end of the market have seen their freight rates remain virtually from a week ago.
For smaller shippers who may not have the same negotiating power and market insights to combat the rate increases, however, it's a different reality These smaller shippers are facing a different reality — one that is forcing them to pay higher freight rates.
Elsewhere, the average spot rate for moving freight from the East to Northern Europe fell 8.5% from a week earlier, a larger decline than the 4.2% decline in rates for the Mediterranean region. Rates for the region fell 11.3%, while rates for Northern Europe tumbled 25.7%.
Xeneta described the Mediterranean region as "a very market" and noted that rates in the region fell 17% in July, while rates in Northern Europe remained largely unchanged. Spot market rates for the Mediterranean and Northern Europe have steadily declining since mid-June and early July, respectively.

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