China Ocean Rates Continue to Drop… It is important to note below-rate trend.
It is important to note below rate trend. Rates are as low as $700 from China base ports to US West Coast for a 40’ container. Consider that rates were between $1800 to $2200 for the same equipment in 2014 and beginning of 2015. The next GRI is a hefty one; however we will see if it will hold. Similar rate trends are happening for IPI points such as Chicago and to the US East Coast. A new trend in IPI moves is for shippers who value lower cost over transit time is to ship via the east coast where IPI rates are lower than if shipped via west coast.
Of other importance is the trend of steamship line mergers and acquisitions. “NOL (APL) was officially sold to CMA. It's believed that the shipping market will come in a disorder situation soon in 2016.” Furthermore, “The market next year could possibly getting chaotic as certain steamship lines will merge into an organization reluctantly."
(CSCL + COSCO, Hanjin + Hyundai, CMA + APL)
Either alliance will bring up a huge wave to this market for certain. I have no idea and can't foresee how this shipping market would end up to.”