Trans-Pacific shippers ‘leaving money on the table,’ says analyst

Shippers should consider U.S. West Coast import gateways for significant cost savings, even with added inland logistics.

“If a shipper has the flexibility of importing goods into U.S. West Coast instead of East Coast, then they must seriously consider it because there is dramatic savings potential, even if it means a heavier reliance on truck and rail to reach the final destination,” said Xeneta Chief Analyst Peter Sand. “This underlines the dynamic approach supply chain professionals must take in managing resilience and freight spend during major market shocks.”

While spot rates on the trans-Pacific continue to tick up, the spread between these two U.S. fronthaul trades is also growing.

“Importing into the U.S. East Coast is currently $3,334 per forty foot equivalent unit (FEU) more expensive than the U.S. West Coast,” Sand said. “Incredibly, this current spread between the trades is greater than the total cost of shipping one container into either coast before the start of the Middle East crisis on February 28 when spot rates stood at $1,879 per FEU into U.S. West Coast and $2,651 into U.S. East Coast.”