The weekly analysis of the Prietus Index shows that in the same period last year, freight rates from China to the US have already started to climb according to demand during the peak season. Freight rates have been stable this week but have dropped significantly since March, setting U.S.-West Coast freight rates just 4% higher than last year, and Asian-Northern European freight rates falling year-on-year for the first time since mid-2020.
The U.S. Congress passed legislation this week aimed at preserving U.S. export traffic, ensuring fair levies and strengthening the Federal Maritime Commission (FMC).
Freight rates between Asia and the West Coast of the United States fell by 4% to $ 9,178 /FEU. This tariff is only 4% higher than in the corresponding period last year. Transportation prices between Asia and the East Coast of the United States fell by 2% to $ 11,710 /FEUAnd are 18% higher than prices in the corresponding week last year.
At the same time, the discovery of new cases of corona virus in Beijing and Shanghai last week has prompted authorities to impose targeted restrictions in certain areas and renew the threat of further closure. Meanwhile, China’s sea freight rates, which have fallen significantly since March, have maintained their level this week. Although freight rates between Asia and the West Coast of the United States are still 6.5 times higher than their level in June 2019, they are now only 4% higher than this time last year, and freight rates between Asia and Northern Europe are now falling year-on-year for the first time since mid-2020.
Any significant increase in container traffic outside Asia – whether from recently reopened Shanghai or due to the expected increase in peak season – is likely to exacerbate existing congestion and delays at destination ports, which in turn will put more pressure on fares.