By Richie Lin     Photo：Tom Fisk，Link: Pexels

The electricity shortage in China gives carriers a wonderful excuse to reduce the vessels capacity and maintain the high ocean rate at least within 2021.

Ocean freight rate reference in week 39:

Following rate reference in week 39. 

• Asia main ports to USAWC USD 12000~15000 per 40GP; 
• Asia main ports to USAEC USD 18000~20000 per 40GP; 
• Asia main ports for IPI points of USA is USD 22000~25000 per 40GP; 
• Asia main ports to Europe main ports and W. Med USD 17000~18000 per 40GP; 
• Asia main ports to WCSA USD 8500~9500 per 40GP; 
• Asia main ports 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 25,000~30,000 per 40GP for different destinations.

Recently, electricity curb happening in 10 provinces in China including economic prosperous provinces such as Zhejiang and Guangdong. Several power plants decided to provide limited electricity due to higher price of coals and stricter regulations on carbon emission. This electricity curb influenced not only the production of factories but also the daily life of normal families. Many factories are forced to shut down all production lines or maintain minimum production capacity. This scenario became a huge set back in international supply chain when everybody is trying to produce toys, clothes, shoes, presents for the coming holiday seasons. Many factories in China have to postpone their shipments after Chinese National holidays and will consequently worsen the shortage of containers when factories rush to fulfill the orders. The electricity shortage in China gives carriers a wonderful excuse to reduce the vessels capacity and maintain the high ocean rate at least within 2021.

Airfreight market rate in Week 39:

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 16.0/kg, 
• PVG/SZX/HKG/TPE to ORD USD 16.0/kg, 
• PVG/SZX/HKG/TPE to JFK USD 19.0/kg. 

Airfreight rate will keep in high ground because airlines canceled many flights to China because of strict regulations of Covid-19.

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.