FCL rate reference and airfreight market rate reference in Week 2

11 Jan 2022

By Richie Lin      Photo:Kelly L

After the danger of supply chain disruption in 2021, customers should adopt the strategy of finding the dependable logistics providers with reasonable price.

For decades, Just in Time and Lean productions have been dominant in the minds of management team of manufacturing companies. However, the break-down of supply chain in 2020 and 2021 has outdated the JIT theory because no one can predict 100% when the cargo can arrive at factories, warehouses, stores. Logistics department in every company has always been considered as the cost unit which cannot create value but expense. However, logistics is not just an expense, it can also create value when done well. People think they can squeeze logistics providers, carriers, airlines to arrange transportation as soon as and as much cheaper as they wish. This idea can be valid in peaceful time but the chaos in 2020 and 2021 has shattered this assumption, and transportation certainty cannot be taken for granted anymore. If companies sticked to the low-cost theory and kept postponing the shipments, they would face problems of losing market shares. Whether it is paying more to get space or setting up overseas warehouse near markets to supply timely, it all increase the logistics expenses. We don’t exclude carriers manipulate the chaos in their favor to make more money  but customers should change their old strategy of finding the cheapest one and replace it by finding the dependable one with reasonable price. Rate will definitely go down after pandemic but never pursue cheap logistics service providers anymore.

Ocean FCL rate reference in week 2:

  • Asia main ports to USAWC USD 16000~20000 per 40GP;
  • Asia main ports to USAEC USD 18000~21000 per 40GP; 
  • Asia main ports for IPI points of USA is USD 20000~25000 per 40GP. 
  • Asia main ports to Europe base ports and West Mediterranean: USD 14000~16000 per 40GP.  

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

Airfreight market rate in Week 2:

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 8.0/kg, 
  • PVG/SZX/HKG/TPE to ORD USD 11.0/kg, 
  • PVG/SZX/HKG/TPE to JFK USD 13.0/kg. 

Airfreight might increase again when customers want the cargo to be shipped out before Chinese New Year.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.

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