[FBX Weekly] Asia-Europe ocean rates climbing on Suez delays

In just one year, global air cargo capacity has gone from 8% to 22%, and it doesn’t look like that momentum will be slowing down soon. 

Key insights:

The impact of the Suez blockage on Asia-Europe ocean prices finally kicked in this week. 
China-US rates:
Analysis

• Asia-North Europe rates climbed 6% this week to $7,762/FEU, after falling 14% since February through last week. 
• Asia-Mediterranean prices increased 7%, to $7,889/FEU, just 2% under their March peak, though backhaul rates from Europe to Asia have remained unchanged as carriers focus on returning empty containers.

• China-US West Coast prices (FBX01 Daily) went unchanged at $4,854/FEU. This rate is 204% than the same time last year.
• China-US East Coast prices (FBX03 Daily) increased 2% $6,222/FEU, and are 131% higher than rates for this week last year.

The delayed but anticipated impact of the Suez blockage on Asia-Europe container flows and freight rates finally kicked-in this week. 

Carriers seeking to avoid or minimize delays caused by congestion growing at ports like Rotterdam – where a queue of waiting ships has formed –  are skipping port calls and off-loading containers at alternate ports, speeding the return of empty containers to equipment-scarce Asian origin ports, but causing more difficulties for many European importers.

The surge of arriving ships in key Asian ports is causing delays there as well. Port congestion and delays at both origins and destinations are expected to make the container shortage in Asia worse over the next few weeks, before easing in early June.