Technology

U.S.-China Ocean Rates Remian High, But Steady


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shipping, cargo, freight

shipping, cargo, freightChina-U.S. ocean rates have remained steady but are still extremely high. Carriers passing on an early November General Rate Increase marks six consecutive weeks of stable rates.

Peak season is still hitting air cargo, with rates still climbing. Freightos.com marketplace data shows a 4-9 percent rate increase on most lanes out of China since last week.

Import rates for Amazon sellers from Asia to U.S. FBA centers  also climbed, with air rates up 34 percent since last week, and 92 percent since the start of October.

China-U.S. rates:

China-U.S. West Coast prices (FBX01 Daily) went unchanged at $3.852/FEU. This rate is 171 percent higher than the same time last year.

China-U.S. East Coast prices (FBX03 Daily) were also stable at  $4,676/FEU, and are 81 percent higher than rates for this week last year.

Analysis

Ocean rates from China to the U.S. went unchanged again this week, marking a month and a half without a rate increase. The steady but still sky high rates – China-U.S. West Coast is 171 percent higher than this time last year – reflect the strong demand that is still making capacity and equipment scarce.

Air cargo rates continue to climb on peak season demand and limited capacity. Freightos.com data shows air cargo rates increasing another 4 percent to 9 percent since last week on many lanes out of China, and charter rates for freighter jets are climbing too. And even as airlines are getting creative in promotions to encourage travel, surging infection rates and new restrictions could further reduce the number of passenger jets in the air.

Meanwhile, this is continuing to pose a problem for smaller importers; shipping from China to FBA warehouses in the U.S. saw air rates climb by 34 percent since last week, and 92 percent since the start of October.

The pandemic has impacted the supply chain in many ways, including speeding the adoption of logistics technology to handle volatility. Air cargo eBookings on WebCargo, for example, have increased nearly 7X since January 2020. Check out this month’s WebCargo Digital Air Cargo Monthly Report for the latest trends in eBookings and digitization in the air cargo industry.



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