China's Economy Drives Ocean Freight

WASHINGTON - Jan 19/05 - SNS -- China's economy is driving current ocean freight markets, argues the USDA's Transportation and Marketing Programs/Transportation Services Branch weekly Grain Transportation Report.

Last year began with a January average of U.S. $58.56 per metric tons (MT) for the U.S. Gulf to Japan route and $43.58 per MT for the Pacific Northwest (PNW) to Japan route. The transatlantic route (U.S. Gulf to Rotterdam) started the year with an average of $34.74 per MT during January.

During February and March, the bulk freight market witnessed its best periods and unusually high daily rates bringing the quarterly average to about $67 per MT for the U.S. Gulf route, $44 per MT for the PNW, and $39 per MT for the transatlantic route.

The increase in the ocean freight rates was attributed to increased shipment of iron ore and minerals, coal, grain, and other products to Asia, especially China. Some of the world’s busiest ports also experienced congestion during these periods.

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