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FCL rate reference and airfreight market rate reference in Week 46

16 Nov 2021

By Richie Lin      photo:Kai Pilger

Bidenflation makes USA government to use political tool to influence the ocean and airfreight rate but rate doesn’t fall again as expected.

Ocean freight rate reference in week 46:

Recently a catchy word comes up in the public eyes. It’ called Bidenflation which reflects the feelings of people afraid of inflation for all commodities from gas to foods in Biden first term. On November 10th, the Labor Department announced that the consumer price index (CPI) increased by 6.2% over the last year, and the producer price index (PPI), which reflects what businesses pay, accelerated at 8.6%. Normally, 2% inflation each year is good for economy because it reflects people wants to buy more things to boost manufacturers to invest and produce more products. However, too much inflation will force people to buy less and less products, then make some companies to bankrupt and hurt economy in the long run. If inflation is not controlled well, Democrats will face huge challenge in the mid-term election of 2022.

Transportation cost is one of the factors to influence price of commodities in global supply chain. Before August of 2020, transportation cost is quite stable and easily to predict the cycle of peak season and low season. But Covid-19 has damaged the balance of supply chain and gave reasons to carriers and airlines to increase rates. The increase of shipping cost will definitely push up products cost and caused inflation. Inflation became political priority for Biden government, so they send a task force to examine the transportation cost and solve the severe port congestions. Under the political pressure, the ocean freight keeps the same level as last week. But we still have rumors saying that ocean freight will increase again when the productions in China come back to normal. Let’s keep watch.

Following rate reference in week 46.

  • Asia main ports to USAWC USD 8500~11000 per 40GP; 
  • Asia main ports to USAEC USD 13500~16000 per 40GP; 
  • Asia main ports to for IPI points of USA is USD 17500~20000 per 40GP. 

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 15,000~25,000 per 40GP for different destinations.

Airfreight market rate in Week 46:

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 17.0/kg, 
  • PVG/SZX/HKG/TPE to ORD USD 17.8/kg, 
  • PVG/SZX/HKG/TPE to JFK USD 21.0/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.

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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