A few weeks before the Chinese New Year on February 17, container freight rates are back on a strong upward trajectory, confirming that seasonality continues to affect the global freight market.
Spot rates on key East-West routes from Asia to the US and Europe, despite the addition of additional capacity by shipping companies, have recorded significant increases in the past week.
The rise in rates is attributed to general rate increases (GRIs), i.e. horizontal price increases imposed by shipping companies, as well as higher FAK levels, the basic flat rate imposed regardless of cargo type, implemented in view of the pre-holiday peak.
Asia-Europe rates rose 9% to 3,000 dollars per 40-foot equivalent unit (feu) in the week to January 8, while Asia-Mediterranean rates rose more than 20% to 4,800 dollars per feu, according to the Freightos Baltic Index.
Rates are now at their highest levels since late August, reflecting rising demand ahead of the New Year on these routes, even as carriers add capacity to accommodate those volumes, Freightos analyst Judah Levine said.
Transpacific container rates, which began rising in mid-December, continued their climb last week with the Jan. 1 price hikes.
Spot rates from Asia to the U.S. West Coast rose 22% to 2,617 dollars per feu, more than 30% higher than in mid-December.
Rates to the U.S. East Coast rose 12% to 3,757 dollars per feu, up 20% in less than a month.
Source: Naftemporiki