Recently, we started to create a new type of report on a quarterly basis. It is a market report of the current development of sea freight rates for most common trade lines. You will receive important information about how the market situation is influencing rates and how rates are developing over time. All rates are given in Gate IN / Gate OUT -Rates occurring for 40ft FCL to provide a better comparison. All rates are valid from beginning of the reported quarter, so you will get the most recent impression of how rates are developing.
For your internal transport budget, this can be an interesting benchmark.
The first market report starts with an increase compared to 2020. Especially in rates between East Asia and Western Countries. Since the imbalance is not completely new, the pandemic enhances it a lot. While China´s economy is running on a pre-pandemic level, the rest of the world is still stuck in Lockdown, short-time work, and home office. The major imbalance is caused by the excessive container and capacity shortage in China.
The imbalance of external trade balance with an excessive surplus on imports could be explained by the effects of home office. People are staying at home. They order new furniture, consumer electronics, and sports equipment. Due to the increased demand, businesses are stocking up their warehouses. All available vessels are fully booked and waiting times at the ports expand the handling time massively. Containers are not returning quickly enough to China, so the shortage of capacity influences the prices.
If you are interested to know more about your specific transportation strategy, do not hesitate to contact us. We will support you to find the right strategy in these difficult times.