Container Shipping Rates on their Record Heights, Alarms the Companies Before Trade Session

3 mins read  Sealuminati TeamJuly 16, 2021
container-ship

In the ongoing container crisis, the container shipping rates between the routes of Asia and United States have increased to sky high levels. Not only between Asia and the United states, the shipping rates between Asia and Europe has also been increased to new heights. These increased container shipping rates have started to pose problems for the companies which are rebuilding their inventories for the upcoming peak sessions.

A report from the Drewry world container index which was published on 15th of July, 2021 shows that, the spot rates of the containers from sport of Shanghai to port of Los Angeles are increased to 236% higher than a year ago, the new values indexed for a 40 foot container being $9733. Not only this, the rate between Shanghai to Rotterdam has increased to $12,954.

One of the most important reason for this strain in the market thread, is the shortage of containers in the trans Pacific route which carries most of the American imports. The shortage of the containers can be understood by the fact that many American investors have to pay premiums for the containers to be available for them. Also many of the enthusiasts and the investors in America believe that this problem is not going to get better in the current year. Clarence Smith, chairman and CEO of Atlanta-based Haverty Furniture Cos. believes that the problem is going to be solved in the next year that is 2022.

One of the major reasons is also the port congestion. The port of Los Angeles confirmed on 14th of July that the loaded container imports at the port equalled 467,763 TEU in June while the export was the lowest in the past 15 years. Not only these, to add up to the problem a huge number of anchored container ships are waiting to discharge their containers at the ports. This strain on the international trade has persisted since last year.

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