Ocean freight rate increases and delays
With many importers and exporters already shipping holiday inventory, August is likely set a new record for monthly US ocean import volumes.
In response to rising demand, ocean carriers have increased transpacific container capacity by approximately 22%. But with no way to increase port capacity, those additional ships are contributing to the new record number of vessels waiting for days outside of LA/Long Beach ports.
Ocean freight rates remain extremely high but stable.
- Asia – US prices went unchanged this week, but are still 5X their level a year ago.
- Asia – US East Coast rates are still more than $20K/FEU.
- Asia – Europe rates are at record levels – 8X this time last year – but have also remained stable.
|Containerized Freight Rates from the Freightos Baltic Index|
|Lane||Global||Asia-US West Coast||Asia-US East Coast||Asia-North Europe||North Europe-US East Coast|
|* Compared to the corresponding week in 2020|
Basically, freight is really expensive, but with close to no capacity many importers and exporters are willing to pay premiums in addition to these rates just to keep their goods moving.