Global container shipping rates hit a record high. The price of container shipping from Asia to Europe and from Asia to the US is at an all-time high.
The largest shipping companies predict that price stabilization is not expected until the beginning of 2022. The price rise is due to the much higher demand for container shipping than expected.
As 90% of global trade is fulfilled by the maritime transport, the growth of container shipping rates are reflected in increased costs for the consumers worldwide.
According to the analytical company Drewry, World Container index increased 3.3% or $207 to $6,463.78 per 40ft container. Freight rates on Shanghai-Rotterdam grew $288 to $10,462 for a 40ft container and those on Shanghai-New York surged $412 to come in at $7,559 for a 40ft box. Likewise, rates on Shanghai-Genoa gained $238 to $9,900 per feu. Similarly, spot rates from Shanghai to Los Angeles increased $210 to $5,952 for a 40ft container and rates on Rotterdam-New York inched up $50 to $3,720 for a 40ft container. Drewry expects rates to remain on the higher side due to port congestion and equipment unavailability.
• Drewry Container Price Index - $ 6,464, increase of 310% over the previous year;
• Shipping cost from Shanghai to Rotterdam - $ 10,462, increase of 518% over the previous year;
• Shipping cost from Shanghai to Genoa - $ 9,900, increase of 418% over the previous year;
• Shipping cost from Rotterdam to Shanghai - $ 1,629, increase of 60% over the previous year;
• Shipping cost from Shanghai to Los Angeles - $ 5,952, increase of 255% over the previous year;
• Shipping cost from Los Angeles to Shanghai - $ 779 USD, increase of 72% over the previous year;
• Shipping cost from Shanghai to New York - $ 7,559 USD, increase of 188% over the previous year;
• Shipping cost from New York to Rotterdam - $ 991 USD, increase of 95% over the previous year;
• Shipping cost from Rotterdam to New York - $ 3,720, increase of 48% over the previous year;
CNN reports, that the latest obstacle is in China, where a terminal at the Ningbo-Zhoushan Port south of Shanghai has been shut since August 11 after a dock worker tested positive for Covid-19. Major international shipping lines, including Maersk (AMKBY), Hapag-Lloyd (HPGLY) and CMA CGM have adjusted schedules to avoid the port and are warning customers of delays.
"We currently expect the market situation only to ease in the first quarter of 2022 at the earliest," Hapag-Lloyd chief executive Rolf Habben Jansen said in a recent statement.
"The current historically high freight rates are caused by the fact that there is unmet demand," Soren Skou, CEO of container shipping giant Maersk, said on an earnings call this month. "There's simply not enough capacity," he added.
As for Georgia, the volume of container shipments were down by 24% in Georgian Ports in Q1 2021.
In January-June 2021, container terminals received a total of 203,808 containers, which was 63,743 less compared to the previous year.
