Imported PET Soars to a Multiyear High in the US, High Shipping Freight Slices Overall Import Volumes

Import prices of bottle-grade Polyethylene Terephthalate (PET) rose by around two-thirds since June 2020 to USD 1521 per MT which is a multiyear high. The reason behind the upswing in prices has been credited to the abrupt rise in global ocean rates for container shipping which forms the backbone for PET imports into US. As per various sources, A whopping 250% increase has been seen in the container freight rates since June 2020.

Surging import prices have affected the overall import shipments of PET into US which subsequently has boosted the domestic industry. Container rates has been pushed by robust demand for consumer durables caused by a shift in the consumer behaviour as people are avoiding travel and eating out. Demand for more goods has led to increased imports from Asia to record highs which has swamped the gateways of major ports like port of Los Angeles. Congestion at the US ports meant limited or no availability of empty containers at several Asian ports.

A PET trader pointed towards the improbability of getting container in and out of the US at this point due to shortage and exorbitant container rates. Importers have been among the worst hit, while retailers have passed on higher container charges on to consumers encouraging US bottle producers to opt for domestically available PET.

Overall PET supply has been tight as US manufacturers were forced to go offline after polar storm. At the same time, imported volumes of PET decreased from over 100,000 MT per month prior to October 2020 to 73,200 MT in February, one of the key reasons being higher freight cost. The freight cost for Asia to US West Coast is USD 3200 per container with additional security charges of USD 6500 for loading boxes in a 22 MT of cargo. This has pushed the PET prices to swell and consequently show an increase of 21% in prices since February 2021.