Shipping & Freight Cost Increases, Freight Capacity, And Shipping Container S...

With ongoing pandemic-related delays and closures, non-stop demand for ocean freight from Asia to the US, and a lack of capacity, ocean rates are still very elevated and transit times volatile.

While some major carriers are adding badly needed capacity, including onAsia-Europelanes, some of these services will cater to premium shipments only. With virtually no spare ships to be found, these additions could come at the expense of capacity on other lanes.

Air cargo rates are stable as importers and exportersseek alternatives to sea freightdespite the expense and possible financial loss – as a way to guarantee inventory and build customer loyalty while their competitors may be sold out due to logistics delays.

With everything that’s going on in freight today, Freightos.comCMO Ethan BuchmanandHead of Research Judah Levinegot together to summarize what’s happening, why it’s happening, and what importers and exporters can expect in the coming months.

Shipping & Freight Cost Increases, Freight Capacity, And Shipping Container S... 1

Retailers are hustling torestock inventoryand keep up with super high consumerdemand, but with delays and closures in ocean freight, it’s hard to keep up .

Importers are placingpeak season orders earlyto avoid being caught without back-to-school and other seasonal inventories. This ongoing demand translates to freight rates climbing on most lanes, with some carriers introducing earlypeak surchargesto already elevated prices.

  • Asia-US West Coastpricesdecreased 9% to$5,970/FEU, but rates are still 114% higher than the same time last year.

  • Asia-US East Coastpricesclimbed to$10,319/FEU,over a200% increase compared to rates for this week last year.

  • Asia-North EuropeandNorth Europe-US East Coastrates increased to$13,040/FEUand$5,989/FEUrespectively. Asia-North Europe rates are nearly 650% more expensive than this time last year.

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