Freight Market Update
Container Shipping Crisis Continues
Demand for space on container ships is mostly driven by companies such as The Home Depot, Inc. and Inc. that restocking after a year of supply-chain disruptions related to the pandemic. The high demand is leading to jamming at ports around the world and pushing up prices for freight and manufactured goods
More than 400 ships on the trans-Pacific trade lanes and 140 from Asia to Europe were late by more than two weeks. That compares with 388 and 69 ships on the same routes, respectively, for the combined years from 2012 to 2020.

Ocean Freight Updates

Asia-US West Coast prices increased 2% to $6,969/FEU. This rate is 167% higher than the same time last year
Asia-US East Coast prices dipped 2% to $9,781/FEU, and are 199% higher than rates for this week last year.

Space: Critical

Capacity: Critical/severe under-capacity

Recommendation: Continue to book well in advance 1-2 months prior to targeted departure for the best possible chance of hitting the target departure date. Encourage suppliers to be flexible and support departures from different origin ports.

Air Freight Updates

The airfreight market picked up strength during the second week of July as export volumes from China increased and rates followed suit.

SE Asian origins continue to see tight capacity situations with only Taiwan easing a bit as subdued demand and increased capacity from home carrier China Airlines helped to push down rates below $10/kg for the first time in months.

Fuel surcharges are increasing in many countries as crude oil reaches prices not seen before. Continued production caps from OPEC could see oil continue its rising prices, which will keep air freight rates high as airlines look to capture this added expense.

The outlook for August is for higher rates. Make bookings early to avoid lengthy uplift delays.