On July 30th, Shanghai Containerized Freight Index (SCFI) rose to 4,196 points from 4,100 points a week ago. At the end of June the index stood at 3905. This four times than the average point by history.
By considering the highly demand from China and challenge on supply chain, Hapag-Lloyd has announced to charge VAD , and MSC will charge the port congestion on cargo from Asia to US and Canada.
The sharp rise in long term rates followed even steeper rises in spot container rates. For European imports spot rates jumped a massive 49.1% in July, to over $13,000 per feu for Freight All Kinds (FAK), and up 120.3% year-on-year. For Asia export rates were up 24.2% in July, and 110.4% year-on-year. For US imports July saw a 17.7% surge in spot rates, up 61.2% over July last year. Both the US East and West Coasts from Asia. Spot freight rates from Shanghai to New York jumped 13% or $1,562 to reach $13,434 per feu, while rates on Shanghai to Los Angeles increased 6% or $550 to $10,503 per feu.
You can’t image the container rate is only USD3000-4000/40HQ (Asia-USA) at early of 2020, then it jump up to 8000, 10000, 14000, and it may break to USD20000.00.
This is a truly breath-taking moment, We’ve seen a combination of high demand, under capacity and supply chain disruption (in part down to Covid and port congestion) driving rates ever higher this year, but nobody could have anticipated a hike of this magnitude. The industry is in overdrive.
All we need to say – we hate it.
Post time: Sep-22-2021
Post time: 2023-07-25