Pacific ocean rates slip as traders approach peak season

July 17, 2017 – Bill Mongelluzzo, Senior Editor of JOC.com reports that spot rates in the eastbound Pacific declined slightly for the second consecutive week, although the 2 percent drop to the East Coast reflects a tightening of capacity, whereas the 5 percent decline to the West Coast indicates that the bigger ships calling in Los Angeles-Long Beach still have sufficient space.

Container vessel

The peak season spike in US imports from Asia should be just around the corner. Normally the lower-value holiday merchandise begins arriving in August, and by late September the higher-value consumer items are moving. As ships fill up, first to the East Coast and then to the West Coast spot rates increase from week to week, sometimes by double-digits, and cargo is often rolled to subsequent voyages.

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