Freight from Asia to North America has risen to a record high
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The freight charge of the “premium” guaranteed service increases again
In the last Friday, the index international freight Freightos Baltic daily rates have shown spot rates from Asia to the US West Coast at US $ 4.97 per FEU (40 foot container equivalent) and freight rates from Asia to the US East Coast. at 6,306 USD / FEU. As such, the prices of both lines are close to all-time highs.
Freight for shipping containers from China to the US West Coast (USWC), (Photo: FreightWaves SONAR)
But that’s only part of the story freight rates. “These metrics are not the bill amount. The “guaranteed” service charges are not reflected in these indicators, “said Nerijus Poskus, vice president of global shipping for freight forwarding company Flexport. Earlier this year, some “guarantee” fees were reduced due to improved container availability in Asia. That has now been reversed, the incident when the Ever Given ship ran aground in the Suez Canal caused a shortage of container equipment on the market. “Container shortages in Asia are once again very bad because of the Ever Given vessel, and it will take another four to six weeks to get back to normal,” Poskus said.
He said: Fee for “premium” service to make sure there is a “back and higher” place. “This premium fare is between $ 2,000 and $ 3,000 higher than the regular FAK spot rates and that’s just the best case.”
Although the cost of transportation has increased very high, but many importers in the US are currently facing difficulties because it is not possible to book a seat (booking). “We are seeing a lot of new customers approaching us asking for help because they can’t find a place,” he added.
Freight increases under contract
A recent presentation by Xeneta, a company that collects contract freight rates, shows that the freight rates of Asia-to-US west coast contracts are being negotiated during the year. this is about 30% -50% higher than last year.
Meanwhile, the figure given by Poskus was twice as high as Xeneta’s. “We are seeing a more than 100% fixed rate increase on the Asia service to the US West Coast and about 75% of the Asia service to the US East Coast,” he said. “Also, almost any contract price is subject to peak season surcharges (PSS), so the price is not exactly fixed either. I think PSS will reduce the gap between spot and fixed rates in the market ”.
When asked about shippers who have not signed an annual contract, he said, “Currently, if you want a fixed price in the market, the answer you will get from shipping lines is that it is too late. already. We have advised many importers to sign contracts early as the contract season for the trans-Pacific shipping service will end soon as demand outweighs supply. And that’s exactly what happened. ”
There are exceptions, such as large shippers with contracts from June this year to June of next year who started negotiations with shipping lines earlier this year. “But if you are just a small importer and you have not signed a fixed contract, you will have to be in the spot market,” said Flexport vice president.
According to Phaata
