Freight rates rise after 12 straight weeks of decline! Seventy-eight trips will be cancelled; Reefer long about freight rate rises sharply
The latest edition of major shipping indices showed that a decade-long decline in sea freight rates stopped last week, with the Baltic Sea Freight index from Asia to the West rising $1,186 from the previous week.
▪ Drury reports 78 cancellations over the next five weeks, mostly on trans-Pacific eastbound routes.
▪ One-year contracts for 40-foot freezers have risen nearly 60%, according to Xeneta, a freight benchmark.
▎ seventy-eight flights will be canceled due to rising freight rates on some routes
The latest edition of the Baltic Sea Freight Index (FBX) Global Composite freight index rose 3% from the previous week to $8,466 /FEU, the first increase after 12 consecutive weeks of decline.
On trans-Pacific routes, the FBX freight index for Asia to west America rose $1,186 from the previous week to $13,698 per FEU, including surcharges. Asia to the U.S. East edged down 0.3 percent to $15,931 per FEU. Asia to Northern Europe edged up 0.2% to $10,583, while Asia to The Mediterranean rose 2% to $12,833.
The market expects spot rates to accelerate as the July 1 expiration of labor contracts at U.S. and Western ports approaches. Despite inflationary pressures on US consumers, shipping lines are reporting strong demand on trans-Pacific routes and some carriers are limiting their commitment to contract business in favour of what is expected to be a more profitable spot freight business.
