The threat of labor disruptions on the East Coast is fueling a disparity in the direction of spot freight rates for shipments from China to ports on the U.S. West and East Coasts.
While the Shanghai Containerized Freight Index for the trade from Shanghai to the U.S. West Coast increased 5 percent this week to $2,490 per 40-foot-equivalent container unit, it dropped 21 percent to $3,720 for shipments to the East Coast.
Although the International Longshoremen’s Association and United States Maritime Alliance agreed to a request from the Federal Mediation and Conciliation Service to resume stalled contract
negotiations during the week of Sept. 17, retail importers can’t afford to wait for a possible resolution before the ILA contract expires on Sept. 30.
