Trans-Pacific container rates becalmed in eye of trade storm

Ocean container rates on the key eastbound route from Asia to the United States were the eye of the storm last week as shippers pulled back amid the latest trade war chaos.

“Trans-Pacific container prices were stable last week as well, with reports that carriers are starting to offer discounts,” said Judah Levine, research chief for shipping analyst Freightos (NASDAQ: CRGO), in a note to clients. “Rates starting to slide a little earlier than usual [after the Lunar New Year holiday] suggests carriers are working to capture volumes that may be proving weaker than expected, as retailers exercise caution in ordering decisions given the trade war-driven uncertainty.”

Spot rates for containers moving from Asia to U.S. West Coast ports were unchanged at $2,675 per forty foot equivalent unit, according to the Freightos Baltic Index. Asia-U.S. East Coast prices stayed level at $3,928 per FEU.

Road, rail and maritime services on the eastern seaboard were disrupted by a massive storm that brought ice, snow and arctic temperatures up the I-95 corridor. The Port of New York-New Jersey was forced to close until after the storm passed.