Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.
Container leasing rates between China and US triple amidst demand recovery

Container leasing rates between China and US triple amidst demand recovery

Posted on February 16, 2024   |  

Global shipping rates surged after the Red Sea crisis, with China-US container leasing rates tripling in three months.

Expectations of container demand recovery align with the US economy's resilience, as GDP grew by 3.3% in Q4 2023.

December's reports on personal income and spending showed lower inflation and strong household spending, boosting the economic outlook.

China's demand for ocean container freight to the US increased, as seen in a 38.6% rise in TEU volumes at the Port of Los Angeles.

Transit times via the Cape of Good Hope increased by 2-3 weeks, leading to a notable shift in supply-demand dynamics.

Freight rates on the China to North America east coast route doubled between December 15, 2023, and January 19, 2024, reaching approximately $5000.

While higher leasing rates may benefit shipping lines temporarily, sustained elevated costs could squeeze profit margins for manufacturers and exporters in the long term.



Previous Next