The Freightos Baltic Global index climbed slightly to start 2022, increasing 6% in January to $9,762/FEU, 122% higher than a year ago and still more than 6X the pre-pandemic norm.

Asia-North America West Coast rates climbed just 6% to $15,485/FEU, which was 25% below the peak season high in September, but still 177% higher than last January and more than 10X the pre-pandemic norm.

This year’s run up to Lunar New Year (LNY) on the transpacific did not see much of an increase in rates. Asia-North America West Coast rates climbed just 6% to $15,485/FEU, which was 25% below the peak season high in September, but still 177% higher than last January and more than 10X the pre-pandemic norm. East Coast prices rose 1% to $16,781/FEU, 172% higher than last year and more than 6X higher than normal.

Transpacific rates typically rise in the weeks ahead of LNY as shippers rush to get orders out before manufacturing slows over the holiday period. But the congestion and delays at US destination ports – as well as hopes that rates will ease after the holiday – may have muted some of the urgency that pushes demand up ahead of LNY most years. 

Prices on the Asia-North Europe and Asia-Mediterranean lanes likewise climbed moderately mid-month on some LNY demand, before easing at the end of January.

Prices on the Asia-North Europe and Asia-Mediterranean lanes likewise climbed moderately mid-month on some LNY demand, before easing at the end of January. Asia-North Europe prices increased just 2% overall to $14,751/FEU, 88% higher than last year and 10X the norm. Asia-Mediterranean prices climbed 4% to $14,080/FEU, 74% higher annually and 7X typical levels.

Omicron impacts on labour at major US ports likely contributed to slowed operations this month, but all eyes were on how the new variant would impact logistics in China.

As positive cases were detected in major port cities like Shanghai, Shenzhen and others, China’s “Zero Covid” policy resulted in closures and restrictions in the affected areas. These steps resulted in some logistics disruptions, mostly in the form of trucker access in and out of these zones.

But one reason that logistics operations have remained largely intact is that the restrictions have been swift and quite targeted. Also, so far there haven’t been positive cases among port workers themselves, which was the case last summer when the port of Yantian was partially closed and resulted in significant disruptions to ex-China ocean logistics in the form of delays, diversions and congestion.

 

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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