By Richie Lin     Photo：Pat Whelen，Link：pexels

Ocean freight FAK rate reference in week 28:

• Asia main ports to USAWC USD 7000~9000 per 40GP; to USAEC USD 9500~12000 per 40GP; 
• Asia main ports for IPI points of USA is USD 14000~15000 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 above rate is only for reference, carriers might only give space for higher rate, which will be from USD 15,000~23,500 for different destinations. 

Carriers have taken advantage of port congestions, shortage of containers and longshoremen caused by the widespread Covid-19 to boost up the ocean freight rate since November 2020. The ever-increasing rate has put too much burden on the running cost of importers and retailers in the Untied State. Some small and middle-sized companies have been forced to file bankruptcy if carriers are not willing to lower or even keep the rate level in the following months. The complaints and threats of bankruptcy finally made USA President Joe Biden to issue an executive order to inspect the current situations to check if carriers are monopolizing the ocean freight markets.

Will the executive order of Joe Biden force carriers to lower the rate level after August 2021? I am afraid this will not happen in 2021 or early 2022 because carriers have tasted the blood of higher ocean rate. Every carrier all announced their record-high profits in 2020 and first quarter of 2021. The unprecedented earnings have pushed up the stock price of carriers and consequently made carriers have more bargain power to get loans from banks and stock-holders for expanding the containers and fleet scale to digest the needs of customers. Therefore, we can foresee carriers would not lower the freight rate in 2021 simply under the pressure of Biden’s executive order. The best they will do is to keep the rate level of July till the end of 2021. However, the pandemic is still a severe variant until 70% people around the globe can get at least one shot of vaccine. 

Airfreight market rate in Week 28:
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.