By Richie Lin

Ocean freight rate reference in week 29:

The following is rate reference in week 29.

• Asia main ports to USAWC USD 9000~11000 per 40GP; to USAEC USD 1100~15000 per 40GP;
• Asia main ports for IPI points of USA is USD 14000~18000 per 40GP;
• Asia main ports to Europe main ports and W. Med USD 9000~10800 per 40GP;
• Asia main ports to WCSA USD 8500~9500 per 40GP; to ECSA USD 8500~9500 per 40GP

Please note the above rate is only for reference. Carriers might only give space for higher rate, which will be from USD 18,000~27,500 per 40GP for different destinations.

Carriers have announced their GRI after July 15th to increase the rate to an unprecedented level in the ocean freight history. Even though carriers are facing complaints from every participant in the supply chain, they still have no intention to slow down the steps of increasing rate during peak season. Lack of containers, port congestions, lack of longshoremen are still their best weapons to defend the attacks toward the super high rate. Carriers have abandoned the old strategy of lowering rate to increase the loading of each vessel. They are willing to limit the supply of space to maintain the rate level in the future.

The situation has become a standoff between alliance of carriers and alliance of customers and forwarders. High rate is not an advantage for forwarders because the running cost will increase 5~8 times, so the financial burden will be severe. We will hear the news of not only bankruptcy of small importers but also small forwarders within this year. And only forwarders are willing to find substitute solutions when carriers are not willing to deliver containers to IPI points. Carriers will only set up their rules that containers should stop at west coast of USA, but forwarders will try to use the transload operation to move cargo inland smoothly.

Airfreight market rate in Week 29:

The airfreight is updated each week to match the market situation. The following market rate for your reference.

• PVG/SZX/HKG/TPE to LAX USD 10.0/kg;
• PVG/SZX/HKG/TPE to ORD USD 10.0/kg;
• PVG/SZX/HKG/TPE to JFK USD 10.0/kg.

Airlines will increase the airfreight little by little to prepare the peak season of Halloween, Thanksgiving and Christmas.