[FBX Weekly] Shippers still feeling Suez effects as rates keep climbing

Though container rates have climbed on all major lanes in the last few weeks, those with exposure to the Suez are still feeling the sting more:

Ocean rates from Asia to the Mediterranean have increased 23% in May to nearly $10,000/FEU, and  Asia-US East Coast and Mediterranean prices climbed 18% each, compared to “only” a 10% increase to the US West Coast.

China-US rates:
Analysis by Judah Levine, research lead at Freightos

• Asia-US West Coast prices (FBX01 Daily) fell 2% to $5,379/FEU. This rate is 221% higher than the same time last year.
• Asia-US East Coast prices (FBX03 Daily) also decreased by 2% to $7,328/FEU, and are 180% higher than rates for this week last year.

With still no signs that demand for ocean freight is softening, freight rates stayed elevated once again. And though most lanes remained stable, prices from Asia to the Mediterranean climbed 8% to a new high of $9,928/FEU, a 23% increase so far this month. This climb is another indication that lanes with more exposure to the Suez disruption may still be feeling the effects, as rates from Asia to the US East Coast, North Europe and the Mediterranean have all increased by 18% in the past month.

And while some European retailers are already experiencing stock shortages due to strong demand and supply chain delays, some analysts are convinced that the real rebound in European demand is still to come. 

And though some carriers will add more capacity soon, it will likely not be enough to rein in rates. Another shipper association, tired of paying more for less reliable service, took additional steps this week urging regulators to do more, even if it means revising the current law.