Asia To North American Rates Hit Spike

Rates on the Trans Pacific market, between Asia and North America, have spiked this month by up to 16% on some routes.

While the Asia to Europe market continues to be in low demand, challenges for traffic from Asia to the US East and West Coast seems to have contributed to a rise in ocean freight rates over the past fortnight.

On the West Coast, the ongoing labour dispute between the dockers’ ILWU union and the PMA employers trade association has flared up again, with talks temporarily breaking down and slow operations leading to disruption in the region.

Both parties are believed to be back at the table now, but they seem to be as wide apart as they have ever been on the critical issues of wages and port automation.

On the East Coast, all water service rates have been impacted by the difficult drought season in Central America, where strict vessel restrictions have significantly reduced capacity for ships traversing the Panama Canal, resulting in this month's introduction of a PSS surcharge of around $500.

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