Ocean freight rates on goods shipped to both major U.S. coasts from Asia fell to the lowest levels since July, reflecting an easing of supply strains after the pre-holiday shipping frenzy that fanned inflation fears in the world’s largest economy.
On the busy Shanghai-to-Los Angeles route, the spot rate for a 40-foot container sank 3.8% over the past week to $9,698, according to the Drewry World Container Index released Thursday. From Shanghai to New York, the price dropped 4.9% to $12,582. Both are still around five times higher than they were before the pandemic in January 2020.
That applied to other modes of freight transportation. “Air cargo carriers reported higher demand as the cost of container shipping exceeded air freight rates” in some instances, the Fed report said.