Container Freight Index Surpasses 5100... West Coast US Freight Rates Near $8000

Container boxes are stacked in the Bunsan New Port yard.

[Asia Economy Reporter Dongwoo Lee] Global shipping freight rates have risen for nine consecutive weeks, surpassing the freight index of 5100 points for the first time in history.

According to the shipping industry on the 8th, the Shanghai Containerized Freight Index (SCFI), a global shipping freight rate indicator, recorded 5109.6 points, up 62.94 points from the previous week, setting a new all-time high. This is the highest level since statistics began in October 2009.

Freight rates on major routes for domestic export companies, such as the North American East and West Coast routes, surged.

The freight rate for the U.S. West Coast route reached $7,994 per 1FEU (12-meter container), rising by as much as $313 from the previous week, approaching $8,000. Over the past month (as of December 3, 2021), it has increased by nearly $1,000 from $7,019.

The freight rate for the U.S. East Coast route also rose by $254 per 1FEU to $11,833, setting a record high for seven consecutive weeks. This is the first time the U.S. East Coast freight rate has surpassed the $11,800 level.

During the same period, the Europe route recorded $7,777 per 1TEU (12-meter container), up $26 from the previous week, while the Australia-New Zealand and South America routes were recorded at $4,691 and $10,323 per 1TEU, up $8 and $47 respectively.

On the other hand, the Middle East and Mediterranean routes saw slight decreases. The Middle East route dropped by $70 to $3,790 per 1TEU compared to the previous week. The Mediterranean route fell by $6 to $7,529 during the same period.

The shipping industry analyzed that congestion at major North American ports such as LA and Long Beach is worsening as the global Omicron variant enters a prolonged phase.

An industry official forecasted, "As the global logistics bottleneck continues, the high freight rate phenomenon is likely to persist through the first half of this year."

This content was produced with the assistance of AI translation services.