SIMIC

OCEAN carriers appear to be making rate gains by trimming vessel capacity on the transpacific, reports New York's FreightWaves.

Spot rates have risen for three weeks, rising to levels last seen in early 2023 and late 2022, according to several indices.



US import bookings remain above pre-Covid levels, and multiple analysts are now highlighting positive rate effects from reduced vessel capacity.



Said Jefferies investment bank analyst Omar Nokta: "Typically, higher demand leads to higher capacity availability, but over the past month, liners have focused on tightening service offerings as demand improved."



Platts quoted multiple market participants who see effects from capacity constraints, including more limited space availability forcing shippers to book earlier and expectations for continued spot rate gains in August.



One logistics source told Platts that Asia-west coast capacity is down 15 per cent this month versus June, with Asia-east coast capacity down eight per cent to 10 per cent, including the effect of Panama Canal restrictions.



Drewry attributed rising transpacific spot rates to "capacity reductions due to an increase in blank sailings," fallout from labour disruptions in British Columbia and "a more optimistic outlook on cargo demand in North America."



Xeneta, put average Far East-west coast short-term rates at US$1,715 per FEU, the highest level since late November and up 33 per cent from June 29. Xeneta assessed average Far East-east coast short-term rates at $2,339 per FEU, the highest since February and up six per cent from late June.