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The daily Freightos Baltic Global Container Index rose 18% last month to a new high of US$6,221 per FEU
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On the trans-Pacific, rates have climbed 30% since the end of May, with prices reaching $6,969 per FEU to the West Coast and $9,781 per FEU to the East Coast
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Rates from Asia to North Europe and the Mediterranean were not as volatile last month, but prices on both lanes have now doubled since the start of the year, and are five to six times their level a year ago
The coronavirus outbreak at the Port of Yantian at the end of May drove spot rates to a new high in June, another major challenge for an industry besieged by unrelenting demand and recovering from the Suez disruption, according to the latest The Baltic Exchange data.
The daily Freightos Baltic Global Container Index (FBX), which reflects the spot rates for 40-foot containers on 12 trade lanes, rose 18% last month to a new high of US$6,221 per forty-foot equivalent unit (FEU), an 84% increase since the start of the year as the first half of 2021 comes to a close.
Reduced activity at Yantian, one of the world’s busiest container ports, for much of June meant more delays, more skipped port calls, and effectively less capacity just as peak season approaches, the report said.
“And each successive disruption is having an outsized impact as the container market is working with no spare capacity to help mitigate new crises,” it added.
The situation has also put additional pressure on rates, already kept elevated by non-stop demand.
On the trans-Pacific, rates have climbed 30% since the end of May, with prices reaching $6,969 per FEU to the West Coast and $9,781 per FEU to the East Coast, after crossing the $10,000 per FEU mark and a new high mid-month. Both lanes have increased more than 80% since the start of the year after already doubling in the second half of 2020.
Rates from Asia to North Europe and the Mediterranean were not as volatile in June, increasing about 10% each to $10,921 per FEU and $11,131 per FEU, respectively, hitting new highs mid-month before declining slightly.
But prices on both lanes have now doubled since the start of the year, and are five to six times their level a year ago, said the report.
As capacity gets diverted to the more congested lanes, trans-Atlantic rates also increased: 40% to North America East Coast and 56% to South America West Coast, an increase of about three times on both lanes so far this year.
As spot rates continue to climb, total costs for importers in the US and Europe to actually secure a spot container booking often includes thousands more in premiums.
Looking ahead, The Baltic Exchange said that though spending on services in the US has begun to rebound, available consumer savings, stimulus cash and low retail inventories are expected to keep volumes and rates up well through peak season and likely until after Lunar New Year in February 2022 at the earliest.
Photo by Gigel.atat
