Though container rates have climbed on all major lanes in the last few weeks, those with exposure to the Suez are still feeling the sting more, according to cargo marketplace Freightos.
Ocean rates from Asia to the Mediterranean have increased 23 percent in May to nearly $10,000/FEU, and Asia- U.S. East Coast and Mediterranean prices climbed 18 percent each, compared to “only” a 10 percent increase to the U.S. West Coast.
China- U.S. rates:
- Asia- U.S. West Coast prices (FBX01 Daily) fell 2 percent to $5,379/FEU. This rate is 221 percent higher than the same time last year.
- Asia- U.S. East Coast prices (FBX03 Daily) also decreased by 2 percent to $7,328/FEU and are 180 percent higher than rates for this week last year.
With still no signs that demand for ocean freight is softening, freight rates stayed elevated once again. And though most lanes remained stable, prices from Asia to the Mediterranean climbed 8 percent to a new high of $9,928/FEU, a 23 percent increase so far this month. This climb is another indication that lanes with more exposure to the Suez disruption may still be feeling the effects, as rates from Asia to the U.S. East Coast, North Europe and the Mediterranean have all increased by 18 percent in the past month.
And while some European retailers are already experiencing stock shortages due to strong demand and supply chain delays, some analysts are convinced that the real rebound in European demand is still to come.
And though some carriers will add more capacity soon, it will likely not be enough to rein in rates. Another shipper association, tired of paying more for less reliable service, took additional steps this week urging regulators to do more, even if it means revising the current law.
Please note that the rates reported and compared in the weekly report are FBX’s real-time daily rates – based on current rates being used by global logistics providers – for Tuesday of each week. Weekly averages, and now daily rates, are accessible free of charge at fbx.freightos.com.