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ASIA-EUROPE RATE SOARED BY 25.8% OVERNIGHT, WHILE TRANS-PACIFIC RATE DROPPED BY 8.3%!

Time:2021-01-06 Publisher:Bridge Num:4916

Entering 2021, the freight rates of the two major east-west trunk routes, Asia-Europe and Trans-Pacific, have skyrocketed and the other has plummeted, and they have followed a different path.

The soaring trend of freight rates in Asia-Europe routes will continue until 2021.

According to the Freightos Baltic Index (FBX), on December 31, 2020, the freight rate for the Asia-Europe route was 5,662 USD/TEU, and on January 1, 2021, it soared to 6,992 USD/TEU overnight. , Soaring 23.5% overnight. As of January 4, 2021, the freight rate of Asia-Europe route remains at this high level.

The freight rate trend of the Asia-Mediterranean route is similar to that of the Asia-Europe route, and there has been an overnight surge.

On December 31, 2020, the freight rate of the Asia-Mediterranean route was 5,644 USD/TEU, and on January 1, 2021, it rose to 7,101 USD/TEU, an overnight increase of 25.8%.

In addition, according to the statistics of the Baltic Sea Freight Index, in 2020, the freight rate of Asia-Europe route have increased by 205%, and the freight rate of Mediterranean route have increased by 168%.

The recent rebound of the epidemic in Europe has been severe, and many countries have raised the level of epidemic prevention measures on a large scale, which has also increased the uncertainty of the Asian and European markets.

A shipper said that on the Asia-Europe route, if it wants to ship in late January 2021, the shipping company’s offer has reached 16,000 US dollars/FEU. "The ships are now fully loaded. If we accept this offer, it means that other shippers' goods will be dumped." The shipper said.

There are also freight forwarders who claim that at present they can only get a space after the Chinese New Year.

Correspondingly, the trans-Pacific route, which has continued to increase prices since the second half of 2020, fell sharply overnight. Some industry analysts said that this may mean that the freight rate of this route has peaked.

According to the Baltic Shipping Price Index, on January 1, 2021, the freight rate of the Far East to West U.S. route also hit a new high, reaching US$4,200/FEU. On January 4, 2021, it fell to 3886 USD/FEU, a decrease of 7.5%. In the same period, the freight rate of the Far East to East U.S. route also fell from US$5,405/FEU to US$4,957/FEU, a drop of 8.3%.

In the whole year of 2020, the freight rate of the Far East to West America route will increase by 209%, and the freight rate of the Far East to East America route will increase by 107%.

Despite the temporary drop in freight rates, many shipping companies have announced new surcharge standards.

Shipping companies including CMA CGM, Hapag-Lloyd, Evergreen Shipping, HMM, ONE, Yangming Shipping and Star Shipping announced that starting from January 1, 2021, they will charge 1,000 for trans-Pacific routes. A comprehensive rate increase surcharge (GRI) ranging from USD~1,200/FEU.

At the same time, the enthusiasm for US imports from Asia has not diminished, especially e-commerce products and medical supplies.

According to the forecast of the Port of Los Angeles, it is expected that in the first week of 2021, the port's cargo volume from the Asian region will be close to 160,000 TEU, an increase of 45% over the same period in 2020. In the second week of 2021, it is expected that the volume will reach an astonishing 175,000 TEU, twice that of the same period in 2020.

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