DREWRY's Maritime Research World Composite Index as of December 16 together with Freightos Baltic Index (FBX) indices indicate east-west freight rates are stablising, but are still sky high after a year of record growth.
Freightos data shows China-EU rates have increased more than 30 per cent in the last four weeks, and China-US west coast prices have climbed 25 per cnet - both surpassing the previous records set during the rush on Covid protective gear in May 2020.
The average composite index, assessed by Drewry for the year to date is US$7,520 per FEU, which is $4,751 higher than the five-year average of $2,769 per FEU.
Specifically, Drewry Composite Index rose 169pc year on year as of December 16: Shanghai-Rotterdam US$13,604/FEU up 197pc year on year; Rotterdam-Shanghai $1,556/FEU, up 19pc year on year; Shanghai-Genoa $12,846/FEU, up 192pc year on year; Shanghai-Genoa $12,846/FEU, up 192pc; Shanghai-Los Angeles $10,180/FEU, up 148pc year on year; Los Angeles-Shanghai $1,306/FEU, up 152pc year on year; $10,180/FEU, up 152pc year on year; Shanghai-New York $13,143/FEU, up 163pc year on year; $10,180/FEU, up 152pc year on year; New York-Rotterdam $1,187/FEU, up 83pc year on year; Rotterdam-New York $6,272/FEU, up 218pc year on year.
Freightos Baltic Index (FBX) was much the same. Ocean rates stayed stable on all major lanes that week, and the latest National Retail Federation (NRF) projections show no signs that demand is waning.
But upward pressure on ex-China ocean rates are expected ahead of Chinese New Year in early February. Covid outbreaks in Ningbo have yet to disrupt logistics, but further spread could cause disruptions like those seen last summer.
The Covid scare in Europe is driving increased demand for masks and the like, which in turn has pushed Asia-EU air cargo rates to new highs, says FBX data.
Asia-US west coast prices (FBX01 Daily) went unchanged at $14,924/FEU. This rate is 285 per cent higher than the same time last year. Asia-US east coast prices (FBX03 Daily) dipped four per cent to $16,536 per FEU.
Said FBX: 'Ocean rates on the major trade lanes remained stable - but still extremely elevated. Over the Lunar New Year holiday at the start of February, ex-China prices are expected to increase in the weeks ahead. Though recent outbreaks in Ningbo have not directly impacted logistics operations, further spread could lead to shutdowns and disruptions like those seen over the summer.
'As has been the case for months, demand and congestion are the main drivers for the sustained sky high rates. The NRF estimates that annual US ocean imports will set a new record in 2021, up more than 20 per cent compared to 2019. And no let up is expected soon: NRF expects December volumes to be 30 per cent higher than in 2019 and just slightly lower than in November - which was one of the busiest months on record - and January volumes to increase ahead of LNY,' said FBX.
US exporters were being hit hard during the pandemic, often struggling to get goods shipped as carriers prioritised empty containers on the return trip to China so that they could quickly be used again on the more lucrative China-US journey. In response, the House of Representatives passed the first reforms to US shipping law in more than 20 years, aimed at helping US exports get moved regardless of market conditions, and protecting shippers from unreasonable detention and demurrage charges.
Rising Covid numbers in Europe is leading to increased demand for Covid gear and testing kits out of Asia, which in turn is pushing Asia-EU air cargo rates up once again.
SeaNews Turkey
Freightos data shows China-EU rates have increased more than 30 per cent in the last four weeks, and China-US west coast prices have climbed 25 per cnet - both surpassing the previous records set during the rush on Covid protective gear in May 2020.
The average composite index, assessed by Drewry for the year to date is US$7,520 per FEU, which is $4,751 higher than the five-year average of $2,769 per FEU.
Specifically, Drewry Composite Index rose 169pc year on year as of December 16: Shanghai-Rotterdam US$13,604/FEU up 197pc year on year; Rotterdam-Shanghai $1,556/FEU, up 19pc year on year; Shanghai-Genoa $12,846/FEU, up 192pc year on year; Shanghai-Genoa $12,846/FEU, up 192pc; Shanghai-Los Angeles $10,180/FEU, up 148pc year on year; Los Angeles-Shanghai $1,306/FEU, up 152pc year on year; $10,180/FEU, up 152pc year on year; Shanghai-New York $13,143/FEU, up 163pc year on year; $10,180/FEU, up 152pc year on year; New York-Rotterdam $1,187/FEU, up 83pc year on year; Rotterdam-New York $6,272/FEU, up 218pc year on year.
Freightos Baltic Index (FBX) was much the same. Ocean rates stayed stable on all major lanes that week, and the latest National Retail Federation (NRF) projections show no signs that demand is waning.
But upward pressure on ex-China ocean rates are expected ahead of Chinese New Year in early February. Covid outbreaks in Ningbo have yet to disrupt logistics, but further spread could cause disruptions like those seen last summer.
The Covid scare in Europe is driving increased demand for masks and the like, which in turn has pushed Asia-EU air cargo rates to new highs, says FBX data.
Asia-US west coast prices (FBX01 Daily) went unchanged at $14,924/FEU. This rate is 285 per cent higher than the same time last year. Asia-US east coast prices (FBX03 Daily) dipped four per cent to $16,536 per FEU.
Said FBX: 'Ocean rates on the major trade lanes remained stable - but still extremely elevated. Over the Lunar New Year holiday at the start of February, ex-China prices are expected to increase in the weeks ahead. Though recent outbreaks in Ningbo have not directly impacted logistics operations, further spread could lead to shutdowns and disruptions like those seen over the summer.
'As has been the case for months, demand and congestion are the main drivers for the sustained sky high rates. The NRF estimates that annual US ocean imports will set a new record in 2021, up more than 20 per cent compared to 2019. And no let up is expected soon: NRF expects December volumes to be 30 per cent higher than in 2019 and just slightly lower than in November - which was one of the busiest months on record - and January volumes to increase ahead of LNY,' said FBX.
US exporters were being hit hard during the pandemic, often struggling to get goods shipped as carriers prioritised empty containers on the return trip to China so that they could quickly be used again on the more lucrative China-US journey. In response, the House of Representatives passed the first reforms to US shipping law in more than 20 years, aimed at helping US exports get moved regardless of market conditions, and protecting shippers from unreasonable detention and demurrage charges.
Rising Covid numbers in Europe is leading to increased demand for Covid gear and testing kits out of Asia, which in turn is pushing Asia-EU air cargo rates up once again.
SeaNews Turkey
