Pacific Shipping Rates Surge To Record Highs -- Now 183% Higher Than 2009

http://www.businessinsider.com/pacific-shipping-rates-spike-20-to-record-levels-2010-6 ^ | 6-21-2010 | Vincent Fernando, CFA

[blam]

Pacific Shipping Rates Surge To Record Highs -- Now 183% Higher Than 2009

Vincent Fernando, CFA
Jun. 21, 2010, 9:38 AM

Pacific shipping rates tracked by research firm Drewry (Their Trans-Pacific Charter Rate Benchmark) spiked 18.9% in just the last week, hitting a record high for Drewry's five-year old index.

A 40-foot container from Hong Kong to Los Angeles cost $2,607 to ship as of June 14th, which is markedly higher than $2,193 just a week before.

JOC:

The apparent jump in spot pricing comes as demand on trans-Pacific lanes remains strong even as space on vessels remains tight and companies report shortages of containers to ship goods out of Asia.

The sharp increase in the spot rate was sparked by the peak season surcharges that several members of the Transpacific Stabilization Agreement implemented as of June 15, the date of the latest Drewry container rate benchmark, said Philip Damas division director of Drewry Supply Chain Advisors in London.

"In addition, eastbound trans-Pacific ship capacity is very tight and there is a premium for any available space on the ships,” Damas said. “A new factor behind the rate increases is the shortage of boxes, which is becoming an issue in China as well as in the U.S.”

On a year-ago basis, the latest shipping rate is a whopping 182.9% higher than the same period in 2009.

[snip]

[XHogPilot]

Perhaps a strong indicator of economic improvement?

[delapaz]

An inventory buildup at the very least. Although the recent weekend news of the Chinese allowing the Yen to strengthen might put some cold water on it.

[Red Badger]

That looks like a shipload of Legos......................

[1rudeboy]

Yup. Look at the way the ship is riding in the water.

[blam]

So Much For That Stock Market Crash...

[Red Badger]

Looks like it ran over an oil boom..................

[Oldeconomybuyer]

Port of Long Beach
Latest Month
Container Trade in TEUs*

	May			Fiscal Year to Date***
	2010***	2009	%Change	2010***	2009	%Change
Loaded Inbound	264,505	208,591	26.8%	1,826,244	1,709,306	6.8%
Loaded Outbound	138,659	121,064	14.5%	992,261	869,385	14.1%
Empties	121,551	89,900	35.2%	823,788	923,631	-10.8%
TOTAL (T.E.U.)	524,715	419,555	25.1%	3,642,293	3,502,322	4.0%

*TEUs: 20-foot equivalent units or 20-foot-long cargo container
**Preliminary estimate
The size of cargo containers range from 20 feet long to more than 50 feet long.
The international measure is the smallest box, the 20-footer or 20-foot-equivalent unit (TEU).
*** Fiscal Year = Oct. 1 through Sep. 30.

 

http://www.polb.com/economics/stats/latest_teus.asp

[norraad]

Must be a load of styrofoam cups.

I live by the Delaware River, things are as slow as always here.

So I don't know if I should believe them or my lyin' eyes.

[Paine in the Neck]

Meanwhile, Baltic Dry is headed straight down, again...

[Alberta's Child]

I don’t put much weight in these year-on-year comparisons between 2009 and 2010, anyway. The latter half of 2008 and most of 2009 were exceptionally poor economic periods to begin with. I’m more interested in how these 2010 numbers compare with 2004-2007.

[backwoods-engineer]

I wonder if this surge is the result of the limited time before U.S. income tax rates massively jump in 2011.

[blam]

"I wonder if this surge is the result of the limited time before U.S. income tax rates massively jump in 2011."

Meredith Whitney: The Rebound In Consumer Spending Is Just The Result Of People Not Paying Their Mortgages