Ocean freight rates have risen for all trade routes since September 2020 due to the ongoing impacts of the COVID-19 pandemic.
According to the Freightos Baltic Index (FBX), Crises hitting just as peak season heats up, the freight rates in August reached $10,174/FEU, an increase of 466% on the previous year.
Also, the charter prices for container vessels have risen fourfold compared to last August.
FBX Year On Year Pricing Trend 2021
From the data of FBX Freightos, as of July 2021, transpacific rates continued to increase on most trade lanes.
Asia-US West Coast rates shot up to $18,346/FEU, more than 6x it’s level a year ago.
Asia-US East Coast costs climbed to $19,620/FEU, 487% higher than last July.
Asia-North Europe prices rocketed to $13,706/FEU, which also rose by more than 250% in the comparable period last year.
What’s more, transatlantic rates were increasing in July 2021, particularly on the lanes from Europe to America’s East Coast.
Europe to North America East Coast prices were up by 6% to $6,013/FEU, triple their level a year ago.
Europe to South America East Coast rates increased 56% to $3,311/FEU, nearly four times their level last year.
Global Shipping Costs Might Continue To Soared for all Trade Routes.
Imbalances Push Prices Up
Lack of Alternatives to Ocean Freight
Unbalance Recovery Through 2021
The pandemic is still leading to disruptions, Even though operations have resumed, congestion and the continuing need for measures to stop the spread of Covid-19 mean delays continue to mount.
Although China and other major trading countries are making progress with vaccination programmes, creating immunity will take time, and consequently handing interruptions will remain a risk over the coming months.
Sunnex Products Limited is a Hong Kong-based company specializing in the manufacturing of catering and household items since 1972. Sunnex is a member of the Sunbeam group whose history dates back to 1929.