Improved container volumes globally pushed the Freightos Baltic Global Container Index (FBX) up 11% this month, to a new FBX-high of $1,949/FEU.

Much of this gain was due to the arrival of peak season in the US.

Import volumes for ocean freight to the US from China consistently climbed since the end of May. July was the first month of the pandemic with a year over year increase in US imports from Asia, and indications are that August volumes were even stronger.

As a result, containerized ocean rates from China to the US West Coast climbed 25% this month – up 102% since the end of May, and 160% higher than last year – to an FBX record high of $3336, and China-US East Coast rates are nearing the $4000/FEU threshold.

And while the June China-US ocean rate spike was exacerbated by capacity restrictions as ocean carriers were expecting a lull in volumes, July and August increases are solidly demand driven: carriers not only restored nearly all cancelled sailings on the route, but have even been launching additional capacity to meet the surging demand.

Many US importers, motivated by the increase in eCommerce activity and the general uncertainty of how long consumer demand will last, seem to want their orders as quickly as possible. 

Mid-month, the demand increase for the shorter, less expensive, China-US West Coast route pushed East and West Coast rates to within an FBX-record low $400, or 12% of each other, down from the $1200 or 42% average premium to ship from China to East Coast ports.

Indications are that volumes from Asia to Europe have also improved, but have likely continued to lag year over year. As such, carriers have continued to manage capacity through blank sailings on the route. The 16% increase of Asia-Europe ocean rates since the end May and the less than 3% climb this month are a combination of increasing volumes and capacity restrictions. 

About Judah Levine, Research Lead, Freightos

Judah is an experienced market research manager, using data-driven analytics to deliver market-based insights. Judah produces the Freightos Group's FBX Weekly Freight Update and other research on what's happening in the industry from shipper behaviors to the latest in logistics technology and digitization.