Tuesday, June 6, 2023
HomeContainersContainer Rates to U.S. Top $10,000 as Shipping Crunch Tightens


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Container Rates to U.S. Top $10,000 as Shipping Crunch Tightens

Container shipping rates from Asia to the U.S. and Europe increased to new record levels over the past week, ensuring transportation costs will stay elevated for companies heading into a peak season for rebuilding inventories.

The spot rate for a 40-foot container from Shanghai to Los Angeles increased to a record $9,733, up 1% from the previous week and 236% higher than a year ago, according to the Drewry World Container Index published Thursday. The Shanghai-to-Rotterdam rate rose to $12,954. The composite index, reflecting eight major trade routes, hit $8,883, a 339% surge from a year ago.

Among the reasons for the tight market: a persistent shortage of containers along the busy transpacific lane carrying American imports. Goods in containers are flooding into the biggest U.S. gateway for seaborne trade at five times the volume of steel boxes full of exports.

“The backlog of getting containers, getting the product, getting it on the ships and just the delays in getting any of those products is significant today,” Clarence Smith, chairman and CEO of Atlanta-based Haverty Furniture Cos., said during an investor conference this week.

Asked how long he expects the supply problems to last, Smith said “I’m hearing it’s going to go into next year. I don’t see it really getting better this year, maybe a little bit better. We’re having to pay premiums to get containers.”

Port Congestion

The Port of Los Angeles on Wednesday said loaded container imports totaled 467,763 20-foot equivalent units in June, while exports fell to 96,067 — the lowest level since 2005. At Long Beach, import volume rose 18.8% to 357,101 TEUs last month, with exports dipping 0.5% to 116,947.

Combined, imports into both ports last month were up 13.3% from the same month in 2019.

Meanwhile, the number of anchored container ships waiting to discharge cargo at L.A.-Long Beach stood at 18 as of late Wednesday, compared with 20 a week earlier, according to officials who monitor harbor traffic. That bottleneck has persisted since late last year, peaking around 40 vessels in early February.

L.A. port Executive Director Gene Seroka said during a press briefing that the demand for consumer goods looks to stay solid for the rest of the year.

“Fall fashion, back-to-school items and Halloween goods are arriving on our docks, and some retailers are shipping year-end holiday products early,” Seroka said. “All signs point to a robust second half of the year.”

Long Beach Executive Director Mario Cordero said that while the port expects e-commerce to drive cargo movement through the rest of 2021, volumes might be peaking. “June serves as an indicator that consumer demand for goods will gradually level off as the national economy continues to open up and services become more widely available,” Cordero said.


Related Posts


Finance & Economy
Shipping News

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

CMA CGM Profit Eases as Container Transport Demand Wanes

CMA CGM expects its profit to ease further for the rest of the year after a first-quarter decline, as an uncertain economy and influx...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Baltic index hits over 3-month low amid lower coal imports

The Baltic exchange’s main sea freight index extended losses for the 15th session straight...

Baltic index falls for the month as vessel demand wanes

The Baltic exchange’s main sea freight index recorded its first monthly decline in four...

North Korea missile tests endanger shipping, UN maritime agency told

North Korean missile tests are endangering the safety of commercial shipping in busy sea...

Singapore Clamps Down on Tankers as Dark Fleet Grows

Singapore’s detentions of oil and chemicals tankers have surged since early last year, highlighting...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...