Ocean freight rate increases and delays

With many importers and exporters already shipping holiday inventory, August is likely set a new record  for monthly US ocean import volumes.

In response to rising demand, ocean carriers have increased transpacific container capacity by approximately 22%. But with no way to increase port capacity, those additional ships are contributing to the new record  number of vessels waiting for days outside of LA/Long Beach ports.

Ocean freight rates remain extremely high but stable.

Asia – US prices went unchanged this week, but are still 5X their level a year ago. Asia – US East Coast rates are still more than $20K/FEU. Asia – Europe rates are at record levels – 8X this time last year – but have also remained stable. Containerized Freight Rates from the Freightos Baltic Index Lane Global Asia-US West Coast Asia-US East Coast Asia-North Europe North Europe-US East Coast This Week $10,321 $18,425 $20,057 $13,855 $5,929 Last Week 0% 0% 0% 0% 0%

Basically, freight is really expensive, but with close to no capacity many importers and exporters are willing to pay premiums in addition to these rates just to keep their goods moving.