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The freight rate between Asia and Europe has exceeded $20,000 Jun 08, 2021

The freight rate between Asia and Europe has exceeded $20,000.

With the gradual recovery of economic activities in Europe and the United States and the growth of market demand for various materials, the import demand in Europe and the United States continues to maintain a high level. However, the situation caused by the epidemic has become normal, such as container stagnation, ship jumping from port, poor transportation turnover and port congestion.

Recently, Europe's two largest container ports, Rotterdam and Hamburg, have both faced severe congestion, forcing shipping companies to jump port - reroute and suspend connections.

Short-term freight rates from China to Europe have crossed the $20,000 mark for 40 feet.

According to foreign data, the top five shipping lines were offering $21,000 per 40 feet from Chinese ports to Felixstowe and Southampton in July, with an average price of about $18,000.

Although these sharply higher rates include surcharges to guarantee equipment and shipping space, some shippers complain that their cargoes are still being dumped.

"We paid their ridiculous fee and thought that was the end of the matter," said a freight forwarder. "But then we found out from our local agent that the box was still on the dock. The shipping company wants more money before they ship the goods."

One UK-based NVOCC said a "brief email" from his carrier suggesting another increase was like the "last straw" that broke their back.

Shippers face similar problems in the trans-Pacific region. Jon Monroe, of Jon Monroe Consulting, says the ability of carriers to "fix rates" by cargo rolled suggests that US shipping laws need to be updated to include limits on rate increases and mutual damages clauses for non-compliance.

Some carriers are charging as much as $25, 000 per 40 feet for trans-Pacific service to the West Coast.

Industry sources said on Monday that the price of shipping from Shanghai to Los Angeles is $32,000. The news was confirmed by Craig Grossgart, senior vice president of global shipping at Seko Logistics. "Honestly, I think this is a polite way for the carrier to say to the customer that they don't want to accept their business," he said. Grossgart said.

As the peak season approaches, consignees in Europe and the US need to prepare for another round of FAK and GRI increases on July 1, paying a few thousand dollars in peak season surcharges.

In the latest week, the Freightos Baltic Index, published by the Baltic Exchange and Freightos, put rates at $10, 979 per 40 feet for the Nordic and $11, 098 for the Mediterranean.

That compares with $6,905 on the West Coast and $9,891 on the East Coast.

The World Container Index, released by Drewry on the 24th, posted its biggest gain since it was launched in 2012. It rose a further 15.9% to $8,061.65 /FEU, or $1,104, and is up 332% from the same period in 2020.

But the gap between the spot market index and the actual rate paid is widening every week as additional fees and a host of other fees are added. That is to say, in order to ship, you give the actual price is far higher than the market price is much, much higher.

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