Container Rate Indexes Show Record Growth
Container rates have continued their meteoric rise following COVID-19’s disruption of global supply chains. According to a report from FreightWaves, freight rate indexes are breaking records on virtually all maritime routes without showing signs of slowing.
According to the report, major indexes show rates from Asia to the U.S. west coast and east coast have spiked by as much as 200 percent. To top it off, data from FreightWaves indicates that rate growth is accelerating.
FreightWaves compiled its report based on data from container rate indices. While these numbers are not specific prices from individual carriers, they do reflect overall industry pricing trends.
Highlights from the Report
- The Freightos Asia-East Coast Index has risen 20 percent over the past week. It is up more than 200 percent from this time last year.
- The Drewry Shanghai-Los Angeles Index is up 194 percent year over year. The index has seen a 9 percent jump in the last week alone.
- Rate hikes aren’t limited to Asia — trans-Atlantic prices have soared as well with some indices up as much as 164 percent.
- For the first time, there are more empty containers than loaded containers arriving at Los Angeles for export— an indication of the industry’s dire equipment imbalance.
View FreightWaves’ reporting for yourself here.
Scarbrough International Keeping Tabs on Container Rates
These growth trends reflect predictions from Scarbrough Group President and COO Adam Hill. His recent comments pointed to a “pay to play” environment where constant peak volume levels and crashing reliability have required unprecedented trans-oceanic container prices. According to Hill, shippers may see slight pricing stability take shape come October. Until then, rates are likely to keep rising as the industry works through its traditional peak season.
Despite growing costs, Scarbrough freight specialists are still committed to finding effective, efficient options for your cargo. Contact us today to learn how we can help you find supply chain stability amid continuous market upheaval.