110% rise! U.S. East Freight Rates May Top $7,500

Recently, the situation in the Red Sea continues to deteriorate, to the global shipping industry has brought about a small impact, the shipping companies continue to adjust routes to cope with changes in the situation.

Prior to the European route of the ship is still in the roundabout, the ship with the container are not back to Asia, is expected to ship from Asia to Europe from January 15 to pay at least $ 6,000 per 40-foot container owners.

It is understood that the shipping company will be in the United States route to transfer large vessels to support the European route of the demand for transportation capacity. In this context, freight rate increases may spread to the North American route.

Some practitioners have indicated that as much as 30 percent of the cargo arriving on the east coast of the United States needs to pass through the Suez Canal, and logistics executives believe that some of the cargo will be shipped to the west coast of the United States instead.

According to the latest data from Shanghai Shipping Exchange, SCFI for this period reported 1896.65 points, up 7.8% from the previous period. Shanghai to the U.S. East route rose 10.45%, to the U.S. West route rose 8.7%.

With the arrival of the peak season of shipments before the Spring Festival, the freight rate from Asia to North America will rise from January 15, according to industry insiders, it is expected that Asia to the U.S. West per 40-foot container of $ 5,200, an increase of 103%; the U.S. East per 40-foot container of $ 7,500, an increase of 110%.

According to Freightos, in addition to higher container freight rates, there will be a surcharge of US$500 to US$2,700, which could make all-inclusive even more expensive.

For the trans-Pacific route from China to the U.S., the continuing situation in the Red Sea may cause shipping lines to abandon the Suez Canal and return to the Panama route.

In the Panama Canal, container ships have priority passage, but there are still waits and minor delays. In addition, forwarders and cargo owners need to pay attention to the space situation of the U.S. East route.

Source:Shipping Consultancy