Japan Freight Rates at Lowest Levels in Months
Market seems to have an ample suppy of vessels to meet the needs of growing demand for freights.
Compiled by staff
Published: Mar 28, 2006
Freight rates between the United States and Japan are at some of the lowest levels in a month, according to the U.S. Grains Council.
As of March 21, rates were $34.95 from the U.S. Gulf and $27.43 out of the Pacific Northwest, slightly lower than the previous week and significantly lower than the rates for the same date last year ($64.11/Gulf and $38.58/ PNW).
According to Jay O'Neil of O'Neil Commodity Consulting, vessel supply is the key to current rates. "Even though the South American harvest is getting underway and demand for ocean freight is growing slightly, the market seems to have an ample supply of vessels to meet the needs and rates are declining," he says.
Looking ahead, O'Neil is not expecting to see significant changes in shipping costs, although rates from the Gulf have approached $36 in the last few days. He adds, "I do think we will see things slide slightly lower, rather than move up."
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