Key insights:

Just when everyone thought it wasn’t possible, ocean rates on major lanes hit new highs on July 1st GRIs, with Asia-US East Coast crossing $10k/FEU to a new high, and the spread of rates for the lane reaching as high as $23,000/FEU. 

As carriers announce new capacity for the major lanes to try and meet demand, these additions will likely come at the expense of less frenzied lanes. Prices from Europe to South America, for example, have tripled in the last six months as carriers may be diverting capacity from there to ex-Asia services.

China-US rates:
Analysis

  • Asia-US West Coast prices (FBX01 Daily) dipped 6% to $6,533/FEU. This rate is still 151% higher than the same time last year.
  • Asia-US East Coast prices (FBX03 Daily) increased 6% to $10,340/FEU, and are 209% higher than rates for this week last year.

As peak season heats up and ocean lanes continue to face delays, more carriers including Maersk and CU Lines announced the addition of new transpacific services which will add some badly needed capacity, with others adding to Asia-Europe lanes as well. Maersk’s service will cater to premium shipments only, and with virtually no spare ships to be found, these additions could come at the expense of capacity on other less overwhelmed lanes. 

One sign that this may already be the case is spiking rates on lower-volume trade lanes where capacity restrictions tend to have an amplified effect on prices.  Rates from Europe to the West Coast of South America, for example, climbed 18% this week, and have nearly tripled in just the last six months to $2,507/FEU. 

Otherwise, prices rose moderately on start of the month rate increases for most other major trade lanes, with Asia to US East Coast and North Europe, and Europe - North America all climbing 6% to new highs. But as has been the case for weeks, many spot shipments can only be booked on premium services, meaning thousands more for some shippers. The range of prices reported by forwarders this week from Asia to US West Coast reached as high as $23,000/FEU indicating the extremes that some importers will have to pay.