This week saw another weekly drop in spot ocean container prices, which have been declining for the sixth week running since they started to rise in early May.
Rate tracker Drewry reports that prices dropped this week by an average of 8% to an average of $4,775 for a 40-foot container. However, some important routes are located far higher. The average rate from Shanghai to Los Angeles dropped by 3% to $6,030. Shanghai to New York rates dropped by 2% to $8,451.
All things considered, rates are still 236% more than the $1,420 pre-pandemic average for 2019.
In the upcoming weeks, rate increases and supply interruptions may be expected as a possibly serious port strike looms over the East Coast. The labor contracts of some 85,000 dockworkers are set to expire on September 30, and a successful renegotiation is apparently still quite some time off.
Spot rates remain unstable due to the strike threat. As East Coast importers start to move away from the East Coast in preparation for the strike, a rise in West Coast pricing is anticipated.
West Coast prices are expected to increase on September 15, according to CV International, a customs broker and provider of logistical services for furniture importers. Additionally, the company has advised shippers to postpone shipments until late October or early November in order to minimize any possible interruption.