Dust is settling between the freight rates of China – USA.

China-USA freight rates relax grip

In its current analysis, New York-based intelligence provider and digital freight forwarding company Shifl notes that China-US spot freight rates have passed their peak over the last four weeks.

With Chinese manufacturers slowing down production with the off-season coming into view, competition for freight capacity in terms of containers and vessel space has calmed down.

Thus, the spot rate for shipping a feu from China to Los Angeles dropped by USD 9,000, or 51.4% between September and October of this year, from a high of USD 17,500 to USD 8,500. The rates for traffic between China and the US East Coast also fell significantly.

Yet, Shifl warned in a recent press release: “This temporary reprieve could soon be overshadowed by a growing backlog of unfulfilled orders.” Inventory shortages and price increases might take their toll. Shabsie Levy, founder and CEO of Shifl, commented: “These rates could go even lower. We’re already seeing long-term rates for shipping 40-foot containers from China to USA go below USD 5,000.”

Besides its headquarters in USA, Shifl maintains offices in China, India, Vietnam, Bangladesh, Georgia and the Philippines. (sh)

www.shifl.com

Copyright transportjournal.com