Since last year, sesame seeds have been blooming steadily to describe sea freight, which is more accurate. The epidemic, the Suez Canal, and the recent congestion incident at the South China Terminal have made various problems snowball.
Northern Europe freight exceeds US$20,000 mark
With the gradual recovery of economic activities in Europe and the United States and the increase in market demand for various materials, import demand from Europe and the United States continues to remain high. However, containers stranded at ports, ships jumping from port, poor transportation turnover and port congestion caused by the epidemic have become the norm.
Recently, the Port of Rotterdam and the Port of Hamburg, Europe’s top two container ports, have faced severe congestion, forcing shipping companies to jump ports – change routes and suspend calls.
Short-term shipping costs from China to Europe have exceeded the $20,000 mark per 40 feet.
Relevant foreign data show that in July, the top five cargoes from Chinese ports to Felixstowe and Southampton were Shipping companies quoted US$21,000 per 40 feet, with the average price around US$18,000.
While these significantly increased rates include additional fees to secure equipment and space, some shippers have complained that their cargo is still being dumped.
“We paid their ridiculous fees and thought that was the end of it,” said one freight forwarder. “But then we found out from the local agent that the box was still there. At the dock. Shipping companies want more money before they ship cargo.”
One UK-based NVOCC said a letter from his carrier suggested The “short email” about another price increase was like the “last straw” that broke their backs.
The price quoted across the Pacific to the US West soared to US$32,000
Across the transpacific, shippers face similar issues. Jon Monroe of Jon Monroe Consulting said the ability of carriers to “manipulate rates” through cargo rolling suggests that the U.S. Shipping Act needs to be updated to include caps on rate increases and mutual damages clauses for non-performance of contracts.
Some carriers offer prices as high as US$25,000 per 40 feet for the trans-Pacific route to the West Coast of the United States.
Industry insiders revealed on Monday that the quoted sea freight from Shanghai to Los Angeles was US$32,000. This news was confirmed by Craig Grossgart, senior vice president of global ocean transportation at Seko Logistics. “Honestly, I think this is a polite way for the carrier to express to the customer that it does not want to accept its business.” Grossgart said.
As the peak season approaches, European and American consignees need to prepare for another round of FAK and GRI price increases on July 1st, paying thousands of dollars Peak season surcharge.
The global container freight index (Freightos Baltic Index) launched by the Baltic Shipping Exchange and Freightos in the past week showed that the Nordic freight index was US$10,979 per 40 feet and the Mediterranean freight index was 11,098 U.S. dollar;
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.
FBX-Nordic Mediterranean
FBX-US East and West
The World Container Index released by Drewry on the 24th recorded the largest increase since its establishment in 2012. It rose further by 15.9% to reach US$8,061.65/FEU, an increase of US$1,104, an increase of 332% compared with the same period in 2020.
However, the gap between the spot market index and the actual rates paid is widening every week as additional fees and numerous other charges are added. In other words, if you want to ship goods, the actual price you give is much higher than the price published by the market. </p
