Ten consecutive increases in freight rates! Northern Europe breaks through the 20,000 US dollar mark, and the trans-Pacific to the west is quoted as high as 25,000 US dollars! When will it end?
In recent months, the maritime industry and the global supply chain have faced tremendous challenges. The chaos of the new crown pneumonia epidemic and the unforeseen black swan incident have made container stagnation, ship jumping, poor transportation turnover and port congestion the norm .
The deadlock in the transportation market's tight capacity has not yet eased, and the global shipping market freight rates are becoming more and more crazy. For example, the "rocket-style" topping continues to break through the original record, and there is no end...
The short-term freight from China to Northern Europe has exceeded the US$20,000/FEU mark, while the trans-Pacific shipping company to the west coast of the United States has quoted as high as US$25,000. It was reported last week that the offer from Shanghai to Los Angeles reached 32,000 US dollars.
air freight from china to usa
European freight rates have recorded a tenth consecutive increase!
According to relevant foreign data, in July, the top 5 shipping companies offered a price of USD 21,000 per 40 feet for cargo from Chinese ports to Felixstowe and Southampton. The average price is around US$18,000.
The two major freight indices of Shanghai Shipping Exchange and Baltic Sea show that freight rates from Shanghai, China to Europe have risen continuously in the past 10 weeks! Among them, in the 23rd week, the spot freight of containers to Europe by sea rose by 7.9%, the 10th consecutive week of month-on-month increase; while the freight rate to the Mediterranean rose by 5.4%, which was an increase from the previous week for 11 consecutive weeks.
The latest issue of the Freightos Baltic Index launched by the Baltic Shipping Exchange and Freightos shows that the Nordic Freight Index is US$10,979 per 40 feet, and the Mediterranean Freight Index is US$11,098.
air freight from china to usa
Ten consecutive increases in freight rates! Northern Europe breaks through the 20,000 US dollar mark, and the trans-Pacific to the west is quoted as high as 25,000 US dollars! When will it end? Ten consecutive increases in freight rates! Northern Europe breaks through the 20,000 US dollar mark, and the trans-Pacific to the west is quoted as high as 25,000 US dollars! When will it end?
air freight from china to usa
A UK-based NVOCC said that a "short e-mail" from the carrier to raise prices again was like the "last straw" that overwhelmed them. "Crazy shipping costs have caused many orders from China to be cancelled, which has had a serious impact on retailers who are unable to raise retail prices."
Although these substantially increased rates include additional fees to secure containers and space, some shippers complain that their cargo is still being dumped.
As the peak season approaches, the situation for shippers to Europe and the United States seems to get worse. They will need to be prepared for the new round of FAK and GRI price increases from July 1st, and they will also face another fee increase from mid-July, as well as thousands of dollars in PSS (peak season surcharge).
air freight from china to usa
Trans-Pacific offers up to US$25,000
In the Trans-Pacific region, the FBX index on the west coast of the United States is $6,905, and the FBX index on the east coast of the United States is $9,891.Craig Grossgart, senior vice president of global shipping of Seko Logistics, confirmed that a shipper last week offered a price of US$32,000 for a 40-foot container from Shanghai to Los Angeles. "To be honest, I think this is a "polite way" for carriers to indicate to customers that they do not want to accept their business." Grossgart said.
Nonetheless, he stated that he has offered an offer of US$25,000 per 40 feet to a shipper who needs to ship 300 containers from Shanghai and Yantian to Los Angeles next month-"This is a serious offer."
With the increase in premiums, coupled with a large number of other expenses, the gap between the spot market index and the actual payment rate is widening week by week.
Ten consecutive increases in freight rates! Northern Europe breaks through the 20,000 US dollar mark, and the trans-Pacific to the west is quoted as high as 25,000 US dollars! When will it end? Ten consecutive increases in freight rates! Northern Europe breaks through the 20,000 US dollar mark, and the trans-Pacific to the west is quoted as high as 25,000 US dollars! When will it end?
air freight from china to usa
The World Container Index released by Drewry on the 24th marked the largest increase since its establishment in 2012. A further increase of 15.9%, reaching $8061.65/FEU, an increase of $1,104, an increase of 332% over the same period in 2020.
At the same time, the latest Shanghai Container Freight Index (SCFI) rose by 37 points last Friday, reaching a new high of 3785.40 points, an increase of 1.0% from the previous period.
In the first half of the year, unforeseen events such as the congestion of the Suez Canal and multiple ports in southern China have pushed up the overall shipping rate.
With the gradual recovery of production and life in European and American countries, the demand for all kinds of materials has increased, and the second half of the year is the traditional peak season for shipping, including the Western Halloween, Black Friday shopping festival, Christmas and other goods will be shipped from August to December. Coupled with multiple adverse factors such as difficulty in booking space, serious port congestion, and unstable shipping schedules, the freight rate in the shipping market will remain high.
air freight from china to usa
