The costs to ship a container from China to the US have broken a new record of more than $20,000 per FEU as retailers ramped up demand to replenish inventories ahead of the peak US shopping season. At the same time, a typhoon alert forced Yantian, one of the world’s busiest container ports, to halt operations this week, adding strain to global supply chains. Market participants said the disruptions had made global shipping an under-supplied seller’s market.
An exporter said shipping companies are charging four to ten times the usual price to transport cargoes. Meanwhile, another shipper expected “extreme rates” to persist until the Lunar New Year holiday in 2022. Soaring freight rates have also pushed ship charter fees, forcing shipping firms to prioritise vessels on the most lucrative trade lanes. This means that rates in less popular routes are also increasing as there are fewer available vessels.
The cost to ship goods on the China-US East coast route stood at $20,804 per FEU this week, an increase of more than 500% from a year earlier and compared to just under $11,000 per FEU on July 27. Meanwhile, the cost to ship cargoes from China to the US West Coast and Europe is just under $20,000 and $14,000 per FEU, respectively.
