Container freight rates prepare for a new increase ! Week 22 – 2021
31
May
This week is expected to see a new general price increase (GRI) on transpacific and transatlantic routes, and spot rates could continue to rise once more.
Container freight rates on major routes continued to be high over the past week, although a few routes have begun to decline.
Last Friday’s Freightos Baltic Index (FBX) showed spot rates for the Asia-to-US east coast service fell to $7,358/40ft, down from $7,477/40ft the previous week.
And transatlantic shippers have seen spot rates on the Nordic to east coast trade (which has doubled since early April) drop to $4,076/40ft, from $4,076/40ft. $4,274 last week.
Meanwhile, on the trans-Pacific shipping route from Asia to the West Coast of the US, the FBX spot rate is flat, at $5,379/40ft.
However, for European shippers and forwarders on routes out of Asia, it was another painful week.
FBX spot rates on the Asia-Nordic route increased 9.1% to $9,871/40ft, while the Asia-Mediterranean route rose 6.1% to $10,214/40ft.
Meanwhile, Drewry’s WCI (World Container Index) for the Shanghai-Rotterdam service stood at $10,174/40ft, up 3% from the previous week.
In fact, many customers are paying more than this price, because shipping lines also charge other fees such as guaranteeing seats, which can be up to 1,000 USD/container.
“The actual price for a 40ft (40ft high-cube) container from China to the UK is currently $13,000-14,000 and I think there is a chance it will rise to $15,000,” said a forwarder. in the UK told The Loadstar this past week.
“The rates are too high,” he added. “We are currently seeing shippers cancel orders because freight rates reduce their margins, and the situation has become really worrying, because I think this is going to lead to failure. fail for business and cause a lot of pain for the economy as a whole.”
Rates on the transpacific and transatlantic routes have been relatively calm over the past week, but this week is expected to see a new general price increase (GRI) on those routes and freight rates. can immediately continue to increase again.
Xeneta founder and CEO Patrik Berglund noted: “After years of uncertainty, shipping lines are determined to seize the present opportunity, capitalize on it to exploit the huge and growing consumer demand. strengthen selling freight rates online (online) with new strategic moves.
“For example, Hapag-Lloyd now plans to impose a $3,000/40ft GRI general price increase surcharge on ports from the Far East to the US from mid-June, along with very favorable fundamentals. , they will most likely hit new price increases on rollout.”
Similarly, transatlantic shippers are preparing a new general increase in price (GRI) and/or peak season surcharge, ranging from $500-2,500 per TEU (units). counting 20ft containers).
Mr. Berglund said: “High spot rates continue to have a strong impact on shippers and forwarders looking for long-term contracts.
“The lack of equipment and the continued spread of the coronavirus, combined with unforeseen factors such as the congestion of the Suez Canal, have tightened supply chains, pushing capacity to the breaking point.
“This puts stress on shippers facing increasingly one-sided negotiations and even when contracts are signed, cargoes are likely to be dropped and agreements broken when shipping lines take advantage of spot rates to make big profits.
“With carriers canceling trains to manage capacity, while demand continues to be strong and retail inventories fall, rates are unlikely to fall in the short term,” he said. he said.
