The incredible shipping fees

Ocean carriers are rolling out more rate increases next week, with FAK rates from Asia to North Europe edging towards $20,000 per 40ft.

This represents an incredible 1,000% increase in the spot rate for the trade a year ago.

Meanwhile, transpacific carriers are hitting Asia to US shippers on 15 June, with GRIs of up to $3,000 per 40ft, with some carriers now asking $17,000 per 40ft for US east coast ports.

And transatlantic shippers are also feeling the pain of rate hike contagion with week-on-week hefty increases: this week’s Freightos Baltic Index (FBX) North Europe to US component jumped 17%, to $5,069 per 40ft.

The FBX reading this week for Asia to North Europe climbed a further 5%, to $10,998 per 40ft, however, most of the limited availability carrier rate offers seen this week for UK delivery were around $16,000 per 40ft.

Andy Cliff of Warrington-based Straightforward Consultancy, warned that some importers, caught in a trap between fixed prices agreed with major retailers and highly elevated freight rates, could be in trouble.

“Many UK importers will find themselves trapped, paying eight times more for freight than last year; so expect insolvencies in 2022,” he warned.