By Richie Lin      Photo : Kurt Cotoaga 

Carriers use every leverage to maintain or even increase the rate level to make more profits in 2022

Ocean freight rate reference in week 51:

Rate is still increasing in week 51 because productions in Vietnam are back and many factories in China are rush to find space to ship out before Chinese New Year in end of January 2022. Additionally, port congestions in Los Angeles and other ports are still serious and will not be eased soon. News report said there are over 100 vessels anchoring along the west coast of USA to Mexico coast lines to wait for the berthing schedules. It is restricted to stay away from San Pedro Bay if the vessel will not berth within 72 hours. Man power hasn’t returned to level before Covid-19 because variants of virus and unemployment compensation kept people less willing to find a job. It will take much longer to digest the backlog containers in the ports and the bottle-neck of supply chain will not be eased in the early months of 2022. Most people predict the chaos will last until the June of 2022 and the rate will be kept at high level after third quarters of 2022. Clearly, shipping lines use every leverage such as limited space to maintain the high rate, and rumors have spread out saying the rate of BCO contract in 2022 will be 2.5 or 5 times higher than the rates in 2021.

Following rate reference in week 51.

• Asia main ports to USAWC USD 11000~15000 per 40GP;
• Asia main ports to USAEC USD 18000~21000 per 40GP; 
• Asia main ports for IPI points of USA is USD 19000~25000 per 40GP. 

Please note above rate is only for reference, carriers might only give space for higher rate, which will be from USD 15,000~27,000 per 40GP for different destinations.   

Airfreight market rate in Week 51:

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 20.5/kg,
• PVG/SZX/HKG/TPE to ORD USD 21.0/kg, 
• PVG/SZX/HKG/TPE to JFK USD 24.0/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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