The Freightos Baltic Global Container Index (FBX) climbed 6% this month (February 2021) to another FBX-high of $4,295/FEU, a 223% increase annually, driven mostly by still-surging volumes from Asia to the US West Coast.

Though February US import container volumes are estimated to have decreased compared to January, the still-peak level shows demand for ocean freight did not ease up significantly this month.  

The sustained surge is still being driven by consumers spending on goods instead of services and by retailers struggling to push inventory levels up, which means no relief for the extreme congestion and delays at key ports like Los Angeles and Long Beach.

The sustained surge is still being driven by consumers spending on goods instead of services and by retailers struggling to push inventory levels up, which means no relief for the extreme congestion and delays at key ports like Los Angeles and Long Beach.

There is normally a seasonal increase in demand and spot rates ahead of the Lunar New Year holiday week during which much of China’s manufacturing shuts down. Rates usually plateau over the break and gradually decrease as the backlog is cleared in the weeks after the holiday.

This year, however, due to non-stop demand and many Chinese factories staying open because of travel restrictions, spot rates to the US continued to climb throughout the month. 

Asia-US West Coast rates increased 15% to $4,922/FEU, a 27% increase over the level at which prices plateaued from September to December and 259% higher than this time last year. Prices for Asia-US East Coast lanes dipped for much of the month before climbing back to just below their January peak, gaining 3% for the month to $5,822/FEU, but still 19% higher than at the end of December and 119% higher than a year ago.

With volumes decreasing since December, rates on Asia-Europe lanes nonetheless increased 6% to $8,306/FEU as transpacific demand and congestion have kept equipment scarce.

With volumes decreasing since December, rates on Asia-Europe lanes nonetheless increased 6% to $8,306/FEU as transpacific demand and congestion have kept equipment scarce. Prices from Asia to the Mediterranean remained high but stable, ending down 2% for the month at $7,940/FEU.

With port congestion causing delays that effectively restrict capacity, and ocean carriers still reporting overbooked ships, observers are not expecting an easing of the equipment shortage and backlogs at least until sometime in Q2.

 

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.


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