The latest report from Drewry´s World Container Index revealed a 2.3% increase in spot rates compared to the previous week. Looking back to one year ago, freight rates remain 170% higher. Turning to some of the major routes in the world, only Rotterdam to Shanghai decreased, with a 2% drop. On the other hand, Shanghai to Los Angeles, Shanghai to New York, and Shanghai to Genoa all saw significant weekly increases in the spot rates, 5%, 4%, and 3% respectively. Prices for Rotterdam to New York also experienced a slight increase of 1% compared to the previous week. Shanghai to Rotterdam, Los Angeles to Shanghai, and New York to Rotterdam all remained constant over the prior week.
According to an article from the South China Morning Post, the shipping rates from China to other Asian countries have also been soaring during the run-up to the Lunar New Year. Considered the peak season for intra-Asian trade, increasing demand and ongoing COVID-19 disruptions have led to a tenfold rise in shipping prices. The Ningbo Containerized Freight Index which monitors the spot rates for ships leaving the Ningbo-Zhoushan port showed that from the end of October to the first week of December, there was a 137% increase in the freight rate to Thailand and Vietnam.
On the other side of the Pacific, an article from Los Angeles Daily News reports the ports of Los Angeles and Long Beach have announced yet another delay for the Container Excess Dwell Fee that was announced at the end of October. The goal of this fee was to ease congestion and encourage shippers to clear out empty containers. This past Monday, port officials announced a 47% decline in aging cargo on the docks, up from the 37% decrease last week. Since the announcement of the fee, it has continuously been delayed, now set to take effect on December 20, if necessary.
Despite the decline in cargo on the docks in Los Angeles and Long Beach, 101 ships are spread over 1,000 miles in the Pacific waiting for space in the ports to unload, according to Splash 247. Due to a new policy from port authorities, asking vessels to idle around 150 miles away from the California Coast, there is no longer the view of dozens of containers ships waiting, however, this doesn’t mean the congestion is truly easing.
According to an article from the South China Morning Post, the shipping rates from China to other Asian countries have also been soaring during the run-up to the Lunar New Year. Considered the peak season for intra-Asian trade, increasing demand and ongoing COVID-19 disruptions have led to a tenfold rise in shipping prices. The Ningbo Containerized Freight Index which monitors the spot rates for ships leaving the Ningbo-Zhoushan port showed that from the end of October to the first week of December, there was a 137% increase in the freight rate to Thailand and Vietnam.
On the other side of the Pacific, an article from Los Angeles Daily News reports the ports of Los Angeles and Long Beach have announced yet another delay for the Container Excess Dwell Fee that was announced at the end of October. The goal of this fee was to ease congestion and encourage shippers to clear out empty containers. This past Monday, port officials announced a 47% decline in aging cargo on the docks, up from the 37% decrease last week. Since the announcement of the fee, it has continuously been delayed, now set to take effect on December 20, if necessary.
Despite the decline in cargo on the docks in Los Angeles and Long Beach, 101 ships are spread over 1,000 miles in the Pacific waiting for space in the ports to unload, according to Splash 247. Due to a new policy from port authorities, asking vessels to idle around 150 miles away from the California Coast, there is no longer the view of dozens of containers ships waiting, however, this doesn’t mean the congestion is truly easing.