Sky-high rates with further carrier increases expected 20/12/21

Despite already sky-high rates out of Asia, it is expected that there will be further rate increases in the new year.

The Loadstar has reported that, from 1 January 2022, carriers will likely roll out general rate increases (GRIs) and freight all kinds (FAK) increases of up to $1,000 per 40ft container across Asia-Europe and transpacific routes.

Equipment and space guarantee premium fees are also expected to be reintroduced, and oil price rises from this quarter will trigger carrier bunker surcharge formula upgrades.

Meanwhile, intra-Asia rates from China to Vietnam, Thailand, Bangladesh and Sri Lanka are rising due to the ongoing impact of global congestion. Pre-pandemic prices were around the $200-$300 mark, however some are now more than $3,000.

Looking ahead to next year, many forwarders have reported they are struggling to secure long-term rate contracts.

Data from Xeneta, the freight rate benchmarking firm, suggests that the majority of 2022 contracts will be agreed at record high levels.

We continue to monitor the market closely. Should you have any enquiries relating to specific bookings, please don’t hesitate to contact our Customer teams.