Many predicted the cost of transporting containers across the Pacific would begin to decline as the economy went from red hot to not so hot. Others thought the rates might hold as carriers have been been very successful in forming cartels - and using methods such as 'blank sailings' to reduce available capacity.

It appears to be the latter. In fact, Best Buy is already starting to do a victory dance. This The Wall Street Journal article by Liz Young cites comments from Best Buy's CEO Corie Barry on her earnings call. She states that they are "starting to see some signs that the market is stabilizing and moderating,”

In terms of moderating, my sources are telling me that rates from Asia to the West Coast are now in the $5000 range, and continuing to decline. In terms of stabilizing, the same sources are saying they are not having any issues getting space. Related, it was reported this morning that LA is down to an 8 vessel queue from well over 100 at it's peak. This is good news for importers. Hopefully it will become good news for consumers as well - who are looking for relief from inflation anywhere they can find it.

As we are now in what would normally be considered the peak of the peak shipping season, it's reasonable to expect further pricing erosion ahead.