As more and more markets open up following lengthy coronavirus lockdowns, the recalibration of recovery costs in the ocean freight industry has sparked a marked increase in liner rates, the Shanghai Containerized Freight Index (SCFI) has reported.
In its latest data set the SCFI found that trans-Pacific and Asia-Europe trade lane yields were consistently trending up.
When the index released its findings on Friday, the last week of August had seen a 7% increase in freight rates.
Altogether this had heralded a 54% spike year-on-year (y-o-y), the SCFI pointed out.
A better dollar-related indication of the general desire for supply chain recovery between leading markets could also be seen in the $254 per 40ft increase for ocean cargo between Asia and the US east coast.
To put that into perspective it’s worth considering that the rate for this trade lane shot up to $4000 in 2018 when US President Donald Trump embarked on a tariff crusade against China.
However, in the wake of Covid-19 and its devastating impact on ocean freight, lines had pushed the Asia-US east coast freight rate to $4 207 per 40ft container as trade between the tariff foes had rebounded, the SCFI showed.
Freight rates to the US west coast were also showing a sharp increase, up by $198 per 40ft container, the index revealed.
It constituted a 124% increase, supply chain portal Loadstar said.
And as lines go for gold in the gains department, reacting to revitalised international trade appetites, freight budgets are being adjusted upward in response to liner rates spiking.