Freight Snaps

Has The Turning Point Finally Arrived? China-U.S. West Coast Rate Plummets By 25% In Two Weeks.

Source: Freightos

China – U.S. west coast rates continue to fall sharply, even 25% lower compared with freight rates on November 5th. With new orders from the U.S. decreasing, you can tell the immense demand for Asian exports is easing. To be more specific, the new orders index declined more than 10% in October, which settled at an one-year low. However, it has been reported that it still requires several months to alleviate the port congestion chaos.

Apparently, it’s actually like a roller-coaster ride with many freight rates’ ups and downs in 2021. To elaborate, the peak season for shippers often starts from August because plenty of retailers begin to import commodities in preparation for the coming holidays. Nonetheless, most products are already on their way to the U.S., leading to the significant fall of freight rates.

Moreover, in order to boost the flow of holiday goods, there will be some adjustments to the Traffic Mitigation Fee (TMF) at Ports of Los Angeles and Long Beach this December. The policy offers incentives for truck drivers to move containers during off-peak hours in order to meet the holiday needs. 

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