[FBX Weekly Ocean rates steady to start the month, as air cargo continues to climb

posted by AJOT | Nov 04 2020 at 11:38 AM | Air Cargo

The pandemic has impacted the supply chain in many ways, including speeding the adoption of logistics technology to handle volatility. Air cargo eBookings on WebCargo, for example, have increased nearly 7X since January 2020. Check out this month’s WebCargo Digital Air Cargo Monthly Report for the latest trends in eBookings and digitization in the air cargo industry.

Now on to this week’s international freight update.

Key insights:

China-US ocean rates stayed steady but still extremely high for another week. Carriers passing on an early November General Rate Increase marks six consecutive weeks of stable rates.

Peak season is still hitting air cargo, with rates still climbing. Freightos.com marketplace data shows a 4-9% rate increase on most lanes out of China since last week.

Import rates for Amazon sellers from Asia to US FBA centers also climbed, with air rates up 34% since last week, and 92% since the start of October.

China-US rates:

China-US West Coast prices (FBX01 Daily) went unchanged at $3.852/FEU. This rate is 171% higher than the same time last year.

China-US East Coast prices (FBX03 Daily) were also stable at $4,676/FEU, and are 81% higher than rates for this week last year.

Analysis

Ocean rates from China to the US went unchanged again this week, marking a month and a half without a rate increase. The steady but still sky high rates – China-US West Coast is 171% higher than this time last year – reflect the strong demand that is still making capacity and equipment scarce.

Air cargo rates continue to climb on peak season demand and limited capacity. Freightos.com data shows air cargo rates increasing another 4% to 9% since last week on many lanes out of China, and charter rates for freighter jets are climbing too. And even as airlines are getting creative in promotions to encourage travel, surging infection rates and new restrictions could further reduce the number of passenger jets in the air.

Meanwhile, this is continuing to pose a problem for smaller importers; shipping from China to FBA warehouses in the US saw air rates climb by 34% since last week, and 92% since the start of October.