By Richie Lin      Photo：Chanaka，Link：Pexels

Expectations of waiting rate to go down will be crushed by the ongoing chaos of supply chain

Ocean freight rate reference in week 43:

Following rate reference in week 43. 

• Asia main ports to USAWC USD 8000~11000 per 40GP; 
• Asia main ports to USAEC USD 12500~14500 per 40GP; 
• Asia main ports for IPI points of USA is USD 16500~18000 per 40GP.

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 12,000~25,000 per 40GP for different destinations.

Just when factories are anticipating the rate might go down gradually due to electricity shortage and decreased orders of seasonal products, carriers cut 30~40 schedules in November to relieve the severe port congestions happening in LA, Seattle and Savanah. And this will consequentially keep the rate in high level or even try to announce another round GRI in November. Ocean freight rate is decided by several players such as carriers, factories, forwarders, buyers, ports, truckers. No single factor can decide the trend of ocean freight rate because cargo has to go through many points from the factory to the end customers. Shippers and buyers might of course want rate to be as low as possible but the port congestions, shortage of containers, labors, chassis would push up the rate at the same time. We cannot rule out the possibility that carriers use chaos to profiteering but rate is the bargaining result of supply and demand in the long run. Some customers are suspending their shipments to wait for rate decrease in the future but their expectations might be crushed by the imbalance and chaos in the global supply chain.

Airfreight market rate in Week 43:

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 14.0/kg, 
• PVG/SZX/HKG/TPE to ORD USD 14.5/kg,
• PVG/SZX/HKG/TPE to JFK USD 16.0/kg. 

Airfreight rate will keep increasing in November because ocean freight is too late for Thanksgiving and Christmas products to be put on shelves of stores on time.

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