Freight rates on Asia-Europe trade lanes rise ahead of peak Christmas season

Container ship passing through the Suez Canal (Photo: Istock)

Freight rates on Asia-Europe trade lanes are rising ahead of the peak Christmas season, according to a new report from Linerlytica released on December 12. The report said that the increase in freight rates could continue throughout December as shippers rush to transport goods before Christmas.

On December 8, the Shanghai Containerized Freight Index showed that rates from Asia to Northern Europe rose 9% to $925 per TEU, while rates from Asia to the Mediterranean rose 10% to $1,387 per TEU, marking the second consecutive week of growth.

The route of Asia- U.S East Coast fell slightly by $5 to $2,441 per FEU, while the route of Asia- U.S West Coast rose only $23 to $1,669 per FEU, even as quota restrictions through the Panama Canal have forced some Asia-bound ships from the East Coast of the United States to reroute through Suez or around the Cape of Good Hope.

Linerlytica said, "THE Alliance carriers are paying a heavy price after failing to secure priority passage and have been forced to divert all three of their Panama all-water services to avoid lengthy delays at the Canal. East Coast capacity remains sufficient to meet market demand despite draft restrictions that have limited full container intake for the Panama passage."

Source: Phaata.com (According to ContainerNews) 

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