By Richie Lin     Photo：Sora Shimazaki

Profits in 2021 gave shipping lines have confidence to maintain the rate level until 2022, and will never come back to the level before February 2020.

Ocean freight rate reference in week 49:

According to news report, top ten shipping lines can make gross profit of USD 120 billion in 2021. This record-breaking profit was mainly built on the high ocean freight rate in their Trans-Pacific services. After tasting the sweet of booming markets in 2021, shipping lines will use any tricks or resources to keep up the rate as much as possible even when port congestions, shortage of labors and containers are all eased after June of 2022. Shipping lines bean to negotiate yearly BCO contract with big customers such as Walmart and Costco, and they all announced the contract rate of 2022 will be triple times higher than the rate in 2021. And we already saw carriers refused to fulfill the contract rate when they found out they could sell space by higher rate to other customers. Big customers still have the space priority and discount, but shipping lines will no longer sacrifice their profits to fulfill their loads.

In week 49, we see the rate going up a little bit compared with week 48. This is because factories in Vietnam and China all back to normal production and shipping lines used blank sailings to keep up the rate. Omicron variant of Covid-19 also make people worry it will happen lock-downs again and cause break down of supply chain to boost up higher rate. But economy cannot suffer another round of lock downs and since 70% people have vaccinated once or twice, governments will not prefer lock-downs anymore. Especially, there will be mid-term election in USA in 2022, Biden administration will not choose lock-downs to hurt the economy and the supporting rate of Democrats. We will keep seeing the tug of war between shipping lines and customers about the ups and downs of rate in 2022. Rates will maintain the level until 2022, and will never come back to the level before February 2020.

Following rate reference in week 49.

• Asia main ports to USAWC USD 11000~12000 per 40GP; 
• Asia main ports to USAEC USD 15000~17000 per 40GP; 
• Asia main ports for IPI points of USA is USD 19000~21500 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 49:

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 20.0/kg, 
• PVG/SZX/HKG/TPE to ORD USD 20.0/kg, 
• PVG/SZX/HKG/TPE to JFK USD 23.0/kg. 

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

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