International shipping will see a new surge next month, with the highest reaching $23000!
According to Drewry's freight rate index, the spot freight rate for a 40 foot container from Shanghai to Los Angeles has been between $5600 and $5700 this spring, soaring to $6000/FEU in mid April and reaching $6358/FEU on Wednesday.
Most shipping companies have submitted reports to adjust GRI by $1000/FEU starting from June 1st. Among them, Hapag Lloyd submitted a GRI of $1200, while the astonishing $3000 GRI came into effect on June 15th.
Shipping companies rarely achieve full GRI, but if demand exceeds supply, as is currently the case with the eastbound trans Pacific route, even if the price per FEU increases by $100 to $200, it indicates that the booking volume in June is quite strong and will continue to exacerbate the shortage of cargo space at Asian loading ports.
According to Drury, even though the spot freight rates on the West Coast have now exceeded $6000/FEU, Schulze said that shippers actually have to pay much more to ensure they obtain container and vessel space on the US trade route. If the insurance premium for ensuring the container and cabin space is included, the actual price to the West Coast is ultimately around $8000 to $11000/FEU.
Schulze stated that although Drewry and other freight indices show freight prices on the East Coast at around $8000/FEU, the range of freight costs required to transport goods is $11000-20000/FEU, and he believes that the highest freight cost to the East Coast can reach $23000/FEU.
In addition, Hayden Swofford, the independent manager of the Pacific Northwest Asia Shippers Association, stated that although some shippers believe that paying these fees can guarantee obtaining containers and space at Asian loading ports, this is not the case.
The premium gives you preferential treatment, not guarantees you anything, "Swofford said.
The bookings from retailers and NVOs continue until June, so the available cabin space next month is expected to be more tight than in May.
The demand is so high, but the cabin space is very tight. I expect the situation to get worse in June, "said Kurt McElroy, Executive Vice President of APEX Marine. The cabin space for ships in Southeast Asia, including Vietnam and Cambodia, is particularly tight, and there is currently no sign of easing.