Container Rates From Asia to Europe Climb to 10-Year High
- The soaring prices on the world’s busiest trade lane add to the strains from a rush in retailer restocking demand
- Restocking in Europe and Brexit fears have pushed container freight prices across the Asia-Europe trade route to a 10-year high
Container freight rates across the world’s busiest ocean trade route have soared to a 10-year high, adding to strains on major shipping lanes as Western retailers rush to restock ahead of the year-end holidays.
The average spot-market price to ship a 20-foot box from Asia to Europe hit $2,091 this week, according to the Shanghai Shipping Exchange, surpassing the $2,000 mark for the first time since May 2010. The rate has more than doubled from $1,029 at the end of August.
Maersk has already annouced implementation of PSS(Peak Season Surcharge from Far East Asia to Eroupe in Decemeber. It was predicted that other shipping lines may follow also. The surge follows a sharp increase in rate from Asia to the US, where they reached record highs in September ahead of holiday-season restocking efforts. The high prices, the result of a rush in demand that far outweighs shipping capacity, has jolted supply chains, triggering equipment shortages as shipping lines have raced to get vessels and containers in place to handle the loads.
“Europe is following the American surge in consumer online spending, compounded by increased imports of personal protection equipment and the pre-Brexit, U.K. stockpiling,” said Jonathan Roach, a container shipping analyst at London-based Braemar ACM Shipbroking.