Latest news with #US East Coast
Yahoo
17 hours ago
- Business
- Yahoo
Trans-Pacific shippers' turn to pause as box rates end slide
While trans-Pacific shippers fatigued from the Great Tariff War step back, the market has seen a pause in plunging container rates just as the peak season is supposed to be getting underway. Spot rates on various trade routes have seen dramatic shifts, said analyst Xeneta in a market update, reflecting broader industry challenges and responses. Market average spot rates for container shipping on July 18 for the Far East to U.S. West Coast route stood at $2,313 per forty foot equivalent unit (FEU), while the rate to the U.S. East Coast is higher at $4,314 per FEU. A deeper dive shows that West Coast prices have seen no change as of mid-July, halting a steep decline amounting to 28% over the first few days of this month. The U.S. East Coast rates have similarly seen a decline, dropping 7% since July 14, and a 26% fall since the end of June. Overall, the drop to the West Coast stands at 58% since peaking on June 1, whereas the rates into the East Coast decreased by 35% over the same timeframe. These dynamics suggest shifts in trading priorities and logistical strategies. The notable variance between trading routes — the gap between the West and East Coast lanes — has inflated to $2,000, nearly double that on June 1, which was $1,155. This enlarged gap spotlights the pronounced economic adjustments facing these trades. 'Sentiment has turned and rates are falling despite the higher U.S.-China tariffs still being on hold, and the deadline for the rest of the world extended into August,' said Emily Stausboll, Xeneta's senior shipping analyst, in a note. 'Shippers can't frontload forever, no matter what happens with the tariffs, so the longer term direction for rates was always going to be downward.' Capacity reduction by carriers on trans-Pacific trades has somewhat mitigated weakening rates on U.S.-bound routes, yet carriers are fighting an uphill battle to stabilize rates further by year's end. The figures for Far East to North Europe and Mediterranean routes are $3,410 and $3,853 per FEU, respectively. Interestingly, the North Europe to U.S. East Coast route records a much lower average rate of $2,011 per FEU. In contrast, the Far East to North Europe trade has experienced an 18% surge in spot rates since June and a 78% increase from late May. This rise is strongly tied to ongoing congestion at North European ports, driven by a spate of new high-capacity additions earlier this year, combined with labor disruptions and logistical hurdles like low water levels in the Rhine river. However, the Far East to Mediterranean trade diverges from this path, instead mirroring the downtrend mirrored in American markets. 'This is an ebb and flow of capacity across global supply chains as carriers seek out the higher rates, but by adding this capacity they risk ruining the party for themselves on the more profitable trades,' said Stausboll. Find more articles by Stuart Chirls here.'It all unraveled quickly': Family-owned business laments tariff and trade chaos Drewry: Ocean rates fall for fifth straight week Port of Oakland containers off 10% as 'recalibration' hits ocean supply chain China could block sale of port terminals: Report The post Trans-Pacific shippers' turn to pause as box rates end slide appeared first on FreightWaves.
Yahoo
15-07-2025
- Science
- Yahoo
The next ‘Storm of the Century' could be even stronger, new study shows
The strongest nor'easters — destructive and often deadly storms that slap the US East Coast with paralyzing rain, snow and flooding — are being supercharged by the effects of climate pollution, a new study found. Nor'easters, which typically form between September and April, are fueled by the temperature contrast between cold Arctic air from the north and warmer, moist air from the Atlantic Ocean. They are a huge threat to densely populated cities along the East Coast. The past decades have been peppered with nor'easters so devastating, some are now known by nicknames which sound like disaster movie titles. The 'Storm of the Century' in March 1993 was one of the deadliest and costliest ever recorded. It packed more than 100 mph winds, dumped almost 60 inches of snow in some places and killed more than 200 people. 'Snowmageddon' in 2010 unleashed more than 20 inches of snow on parts of Pennsylvania, Maryland, Virginia and West Virginia, killing 41 people and leaving hundreds of thousands without power. Michael Mann, a climate scientist at the University of Pennsylvania and an author of the study, was trapped in a Philadelphia hotel room for three days during Snowmageddon. It was this experience that first sparked his curiosity about how these storms might be affected by global warming. Fifteen years later he believes he has some answers. There is a general consensus there will be fewer nor'easters in a warmer world, because the Arctic is heating up faster than the rest of the Northern Hemisphere meaning there is less of a temperature contrast to fuel the storms. But what has been unclear is what will happen to the intensity of these storms, which have tended to be understudied, Mann said. To answer this question, the scientists used historical data and a cyclone tracking algorithm to analyze nor'easters between 1940 and 2025, pulling together a digital atlas of these storms. They analyzed 900 in total and found the maximum windspeed of the most intense nor'easters increased by around 6% since 1940, according to the study published Monday in the Proceedings of the National Academy of Sciences. This may sound small but it vastly increases the damage a storm can wreak. A 6% boost in wind speed equates to a 20% increase in the storm's destructive potential, Mann said. 'That's substantial.' The rates of rain and snow dumped by these storms have also increased by about 10%, according to the analysis. The reason nor'easters are intensifying is 'basic physics,' Mann said. Warmer oceans and air mean more evaporation and more moisture in the atmosphere, which gets wrung out in the form of more intense rain or snow. The level of damage these storms can inflict make it vital to better understand how they'll change in a hotter world, Mann added. The 'Ash Wednesday' storm in 1962, for example, caused huge devastation along the East Coast, inflicting a total economic loss equivalent to tens of billions of dollars in today's money. It did 'as much damage as a major landfalling hurricane,' he said. The results also suggest the flooding risk in many East Coast cities may be underestimated, the study noted. 'Nor'easters have been neglected, and that's another contribution to increased coastal risk that we haven't really been focusing on enough,' Mann added. Jennifer Francis, a senior scientist at Woodwell Climate Research Center who was not involved in the study, said the findings highlight the need for better preparedness. 'Coastal communities in the Northeast where nor'easters strike should sit up and take notice… proactive preparation is less costly than post-storm recovery,' she told CNN. The findings are also important because they shine a light on the different ways the climate crisis plays out, said Judah Cohen, an MIT climatologist who was also not involved in the study. The effects 'can be counter-intuitive, including the idea that climate change can result in episodic increases in severe winter weather,' he told CNN. Even as the world warms, and the snow season shortens in many parts of the US, there will still be periods of heavy snowfall and intense cold, Mann said. 'Individual events may pack a bigger punch.'
