Turbulent trans-Pacific market conditions to remain through mid-year 2022: Matson

US-based ocean liner Matson expects market constraints on the trans-Pacific tradelane to continue at least through first-half 2022, the company said Nov. 3.

"Currently, supply chain congestion continues in the Transpacific tradelane with the combination of ongoing elevated consumption trends, inventory restocking, and bottlenecks at critical points for both ocean and overland transportation," the company said in its third-quarter earnings report Nov. 3. "We expect these conditions to remain largely in place at least through mid-year 2022."

Despite ongoing supply constraints, the company registered in increase in container liftings on all tradelanes. On the China-to-US trade, Matson moved 46,500 forty-foot equivalent units, up nearly 22% compared to Q3 2020.

This was attributed in part to an increase in eastbound sailings, and the utilization of an additional loader ship.

High freight rates contributed to strong financial performance in the third quarter, with ocean transport revenue surging to $864 million, up 73% on year.

"Matson continued to realize a significant rate premium in the third quarter 2021 and achieved average freight rates that were considerably higher than in the year ago period," the company said.

During the same period, the Platts Container Index, a weighted average of Platts' key assessments, jumped just over 415% to average at $7,346/FEU for Q3 2021, on a Freight All Kinds basis.