Peak season demand and widespread port congestion pushed rates up to start the month, though prices have been level on most lanes since any initial climb. The Freightos Baltic Global index increased 6% for the month to $10,916/FEU, 386% higher than a year ago and more than seven times the pre-pandemic norm.
With transpacific demand still surging, and the National Retail Federation estimating that total US ocean import volumes in September increased 18% compared to September 2019, carriers continued to add more capacity to the lane. But with ports like LA/Long Beach already overwhelmed, much of that capacity is being sapped, waiting days for an open berth as the number of anchored container ships in San Pedro Bay hit a new high of more than 70.
So even with the added capacity, Asia-US rates climbed at the beginning of September before levelling out, with Asia-US West Coast rates increasing 4% to $19,182/FEU, and Asia-US East Coast prices climbing 11% to $22,234/FEU, both more than quadruple their levels a year ago when spiking ocean costs were already riling shippers.
Early-month announcements by CMA CGM and Hapag-Lloyd that they would cap spot rates through the start of 2022 may have contributed to the relative stability in transpacific rates for the rest of the month despite no easing in demand and growing congestion at major Chinese origin ports as well. Market conditions could test the effectiveness of the policies in keeping ocean costs from climbing, as the cap does not include potential increases in premiums and surcharges.
Rates stayed elevated on Asia-Europe lanes, as European ports continue to struggle with congestion as well, and as shippers there compete with US importers for equipment at origin ports. Asia-North Europe prices increased 7% to $14,756/FEU, a new high and 581% higher than a year ago. Asia-Mediterranean rates were stable, climbing just 2% for the month to $13,139/FEU, 473% higher than last September.
With nearly all of the globe’s container fleet already active, more capacity on the transpacific means fewer ships elsewhere, complicating things for shippers on lower-profile routes like Asia-Middle East and the transatlantic. North Europe-North America East Coast rates increased 16% this month to a record high of $6,986/FEU, quadruple its level a year ago.
Source: Judah Levine, Research Lead, Freightos