Shipping lines set for August price increase to curb Asia-US West Coast rate drop

Posted on August 1, 2024   |  

Mainline operators plan a mid-August rate hike for Asia-US West Coast routes to counter recent price drops.

Carriers announced a $1,000 per 40ft rate increase for 15 August, aiming to stop the three-week rates slide.

The Shanghai Containerised Freight Index reported a 7% drop in Shanghai-US West Coast rates last week, now at $6,663 per 40ft, though still higher than last year's $1,943.

Even with strong Q3 peak season cargo growth, new services like SeaLead Shipping’s AWC have increased capacity on this lane by over 15%.

306 vessels, with a combined capacity of more than 2.58 million TEU, are now operating on the Asia-US West Coast route, a 14% increase from the previous year.

Asia-US East Coast rates fell by 2% to $9,557 per 40ft, with capacity remaining steady at over 2.75 million TEU.

Asia-Europe rates have held steady at $4,991 per 40ft, as tight capacity offsets lower cargo volumes.