FBX Index July: Rates Jump on Market Disruption
Asia-US West Coast rates reached $18,346/FEU, more than 6x its level a year ago, and Asia-US East Coast prices climbed to an astounding $19,620/FEU, 487% higher than last July.
On the transpacific, insatiable consumer demand for imports – as peak season ordering is shifting into high gear toward its expected August peak – pushed rates up throughout the month to new record highs. Asia-US West Coast rates reached $18,346/FEU, more than 6x its level a year ago, and Asia-US East Coast prices climbed to an astounding $19,620/FEU, 487% higher than last July.
And as those volumes arrive, the US supply chain is still contending with existing backlogs. Though conditions have improved, Union Pacific’s mid-month weeklong suspension of rail bookings from West Coast ports to its Chicago hub, aimed to help clear the overwhelmed midwest terminal is a good indication that logistics are still operating at a deficit
Prices from Asia to North Europe spiked 22% since the end of June to $13,706/FEU, more than two and a half times their level at the end of 2020 and more than eight times the benchmark a year ago.
Prices from Asia to North Europe spiked 22% since the end of June to $13,706/FEU, more than two and a half times their level at the end of 2020 and more than eight times the benchmark a year ago. Growing demand over the first half of the year – estimated to be well above 2019 levels – is of course contributing to the climbing rates and congestion.
In transatlantic trade, Europe – North America East Coast prices climbed 6% to $6,013/FEU, but are more than triple their level a year ago, while Europe to South America East Coast rates spiked 56% to $3,311/FEU, approaching four times their level last year, and with nearly all of that climb taking place since February as capacity was diverted to more congested lanes.
Source: Freightos Group’s FBX, The Baltic Exchange