Since December 2023, SOC lease rates on the China-US route have soared dramatically, with a staggering 223% increase compared to the period before the Red Sea Crisis. With the US economy showing signs of recovery, demand for containers is expected to gradually increase in the coming months.
U.S. Economy Recovers, Demand for Boxes Grows Simultaneously
In the fourth quarter of 2023, the U.S. GDP grew by 3.3%, with the economy showing strong resilience. This growth was driven by consumer spending, non-residential fixed investment, exports and government spending.
According to PortOptimizer, the Port of Los Angeles, USA, recorded 105,076 TEUs of container throughput in the 6th week of 2024 compared to the same period last year, an increase of 38.6% year-on-year.
Meanwhile, China’s demand for U.S. line containers is surging. A forwarder from California shared the current situation of the US market with Esquel: “Due to the Red Sea attack and ship bypass, Asian cargoes to the US are facing a tight situation with containers. In addition, disruptions to the Red Sea corridor, the Suez Canal and the Panama Canal could lead to an increased demand for U.S.-West routes. Many importers are choosing to tranship and truck their cargoes to U.S. West ports, adding pressure on railroads and carriers. We advise all customers to forecast ahead, consider all available routes and determine the best option based on cargo production and delivery dates.”
Post time: Mar-12-2024