Container shipping rates from East Asia and China to the US on the up

Rates for shipping containers from East Asia and China to the US edged higher recently and remain at the highest since mid-2022 due to congestion at global ports, as per an analysis by ICIS.

The report added:

Shipping market intelligence firm Linerlytica said more than 4.3 million TEU is waiting to berth at container ports globally, driven mainly by delays across East Asia as fresh storms continued to disrupt vessel schedules.

“In terms of total TEU, the stranded capacity is higher now compared to the previous peak of 4.0 m TEU reached during the Covid pandemic in 2022,” Linerlytica said.

The current stranded capacity accounts for 12.6% of the global fleet at 34.4 m TEU, which is lower than the peak of 15.7% recorded in 2022 when the total fleet stood at just 25.3 m TEU, Linerlytica said.

The firm said congestion at the Panama Canal is also starting to build up with transit slots set to be cut further in September, although delays for containerships with pre-booked transit slots remain minimal.

The disruptions have created a shortage of vessels that continue to support freight rates, with the SCFI (Shanghai Containerized Freight Index) rising further recently. It is now 156% higher since the start of the Iran war.

Rates to the West Coast are now between $6,300/FEU and $7,500/FEU, while rates to the East Coast are between $8,200/FEU and $10,500/FEU.

Rates from supply chain advisors Drewry were essentially flat week on week from Shanghai to Los Angeles and fell by 2% from Shanghai to New York.

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