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Ocean Freight Charges Rising Rapidly

Ocean freight rates continue to rise worldwide.

Ocean freight charges are soaring worldwide. Major shipping companies are flocking to routes to the Americas after a hike in demand from the United States and this is leading to a rapid rise in charges for shipping to Europe, Southeast Asia, etc.

The Shanghai Containerized Freight Index (SCFI) jumped 8.8 percent from 1,529 to 1,664 from Oct. 30 to Nov. 6 and then to 1,857 on Nov. 13. In the second half of this year, the index is continuing to rise except three weeks.

Last week’s increase was led by rapidly increasing charges for shipping to Northern Europe, the Mediterranean and Southeast Asia. For example, the indices for Northern Europe and the Mediterranean rose 21 percent and 22.6 percent to 1,508 and 1,674 in just one week, respectively. “An increase in consumption in the United States is leading to ship and container concentration on the United States,” said an industry source, adding, “As a result, supply to the other routes is falling to cause a rise in freight charges.”

In particular, the index for Southeast Asian routes surged from 475 to 728. In other words, ocean freight charges are going up across the world whereas American sea routes led a rise in charges this past summer.
Source: Business Korea

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