All-inclusive container shipping rates from North Asia to North America were available to some shippers without premium surcharges in the week to Feb. 17 as more space on ships became available following the Lunar New Year slowdown. But market sources also warned that there remains a backlog of cargoes to be shipped out from China that could lead to premium service fees being reimposed were normal services resume in March. Freight forwarders based in North America and Europe confirmed that some trans-Pacific bookings were done on a freight-all-kinds basis, assessed by Platts at $9,500/FEU for North Asia-West Coast North America and $10,950/FEU for North Asia-East Coast North America. “You can get FAK space when the shipping lines see pockets where they aren’t fully booked, but that will probably go away fast,†a US-based freight forwarder said. “March will be spent digging out the volumes that didn’t leave before Chinese New Year.†Those FAK bookings may still come with a large degree of uncertainty around departure dates as shipping lines have been busy rearranging their schedules during the slowdown period. As factories and cargo transport systems in China ramp up again in the second half of February, demand could again exceed carrying capacity for shipments to North America, prompting shipowners to reapply surcharges for priority services. “We really need to see where inventories are and what consumer spending numbers look like to start to consider if the market is on a downturn or if will continue to be strong,†another US-based freight forwarder said. Premiums reduced from Southeast Asia, but not withdrawn The all-inclusive rates on the Southeast Asia to North America trade lane were slightly lower in the week ending Feb.18 due to tepid demand and easing availability, sources said. The latest rates from Southeast Asia including premium service fees were heard at $16,500-$17,500/FEU for East Coast North America and $13,000-$15,000/FEU for the West Coast. “Rates have declined by nearly 7-10% over the next few days as demand has slowed down, but prices will pick up again soon,†a source based in Singapore said. Cargo volumes were reduced as many retailers stocked their inventories before the Lunar New Year festival in early February, but demand is likely to strengthen again by April, the source added. Meanwhile, container volumes at the Port of Singapore inched lower in January to 3.14 million twenty-foot equivalent units from 3.19 million TEU in December. But as rates for shipments to the US have eased come down, sentiment remains bullish for rates to Australia, sources said. The all-inclusive rates for Southeast Asia to Australia were heard at $8,000-9,000/FEU, nearly double rates from a year ago. There is a strong demand for space on voyages to Australia, but equipment availability remains scarce as carriers are more focused trade lanes to the US and Europe, the Singapore-based source said. European ports play catch-up during LNY slowdown Container rates from Asia to Europe saw little movement over the course of the week, with premiums still a rarity in the market despite some expectations that they would become more of a feature. The market was mired in a post-Lunar New Year lull with gaps beginning to appear in arrivals from the ex-Asia void sailings at the start of the month. This provided European ports and logistics providers a brief period of respite to move goods inland from ports and ease some of the capacity tightness plaguing the region. There was also some softening in spot demand for the Asia-to-Europe route, which is expected to further assist the hinterland movement of goods.