Container rates for shipping between China and U.S. West Coast have risen 11% since last week to a record high of $3,058 /FEU, and up 110% from the same period last year.
China-U.S. East Coast freight rates also edged up 3% to $3,466 /FEU, up 30% from the same period last year.
It is worth noting that the rate has risen at an alarming rate, not because of too little shipping capacity, but because of too much demand for imports.
While capacity is at its highest level since January, FREIGHTOS wrote, earlier this year's peak season has seen shipments from China to the U.S. fill up and freight rates climb.
"The trans-pacific eastbound market is going crazy," says Nerijus Poskus, vice president and head of global shipping for Flexport, a digital freight forwarder. It says the current market situation is unprecedented.
High sea freight rates and voyage delays have also prompted some shippers to choose to ship their goods by air, further driving up air freight rates this week. Trans-pacific air freight prices rose for the fourth week in a row after falling since early May, according to Freightos market data.
Source: Sarah Yu, XINDE MARINE NEWS
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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