In 2021, the freight rates of the two major east-west routes between Asia and Europe and the trans-Pacific have soared while the other has plummeted, walking out of different tracks.The surge in freight rates between Asia and Europe continued into 2021.
China/East Asia to North Europe freight rate trend
According to the Freightos Baltic Index (FBX), on December 31, 2020, the freight rate between Asia and Europe was $5,662 /TEU, but on January 1, 2021, it soared to $6,992 /TEU overnight, a 23.5% jump overnight.
As of January 6, 2021, freight rates for Asia-Europe routes create a new high level $7340.
China/East Asia to Mediterranean freight rate trend
China/East Asia - Mediterranean route freight price trend is similar to Asia-Eruop route, also appear overnight skyrocketing market.
On December 31, 2020, the Asia-Mediterranean route was priced at $5,644 /TEU, and on January 6, 2021, it rose to $7,207 /TEU, an overnight increase of a staggering 27.7%.
In addition, according to the statistics of the Baltic freight index, in 2020, the annual freight prices of Asia-Europe routes rose 205%, and the annual freight prices of Mediterranean routes rose 168%.
Recently, the outbreak in Europe has rebounded seriously, and many countries have greatly upgraded the level of epidemic prevention measures, which has also added to the uncertainty in the Asian and European markets.
Shippers have said they are offering $16,000 /FEU to ship in late January 2021 on Asia-Europe routes."Ships are full at the moment, and if we accept this offer, it means other shippers' cargo will be dumped."
Other freight forwarders said they were currently only able to get shipping space after the Chinese New Year holiday.
In contrast, trans-Pacific routes, which had been rising since the second half of 2020, fell sharply overnight.Industry analysts said that this may mean that the line's freight rates have peaked.
According to the Baltic Freight Index, on January 1, 2021, rates on the Far East to West US route also hit a new high of $4,200 /FEU.On January 6, 2021, it fell to $3,890 /FEU, a 7.4% decline.
During the same period, the rate for the Far East to East US route also fell from $5,405 /FEU to $4,966 /FEU, a higher drop of 8.1%.
China/East Asia to North America East Coast route freight trend
In 2020, the freight rate of the China/East Asia to North America West Coast of the United States rose as high as 209%, and the freight rate of the China/East Asia to North America Eest Coast rose 107%.
Despite the temporary drop in freight rates, a number of shipping companies have announced new surcharge standards.
Many shipping companies, including CMA CGM,Hapag-Lloyd, Evergreen Marine, HMM, ONE, YangMing, and ZIM have announced that starting January 1, 2021, they will be charging a combined rate increase surcharge (GRI) ranging from $1,000 to $1,200 /FEU on trans-Pacific routes.
Meanwhile, the surge in imports from Asia, particularly e-commerce products and medical supplies, continues unabated.
Due to the influence of Christmas, the ports in the west of the United States are congested. Container ships arriving at the port on the same day are still moored in the anchorage of the ports in the west of the United States, waiting for the berth. The ports in the west of the United States are facing the dilemma of high traffic volume.
Longer times to move containers from terminals due to a crowded surface transportation supply chain mean there will be no room for container ships in Los Angeles and Long Beach for several days, with average waiting times expected to increase to about two weeks.
The Port of Los Angeles is expected to ship nearly 160,000 TEUs from Asia in the first week of 2021, a 45 percent increase over the same period in 2020, according to the Port's forecast.
In the second week of 2021, shipments are expected to reach a staggering 175,000 TEUs, double the figure for the same period in 2020.
