Freight Rates on U.S.-East Routes Rise

Congestion at East Coast ports is increasing, with about 30 ships currently waiting to dock in the Port of Charleston. With more ships arriving, congestion is likely to increase further in the near term.

Related data shows that freight rates on the U.S. West route reached $16,000/FEU, while spot rates on the U.S. East have approached $17,500/FEU, with the peak rate on the route being $20,000/FEU at the end of 2021.

Meanwhile, increasing cargo delays in European ports have led to an increase in freight rates on the transatlantic route.

A U.S. freight forwarder said, "With the current severe delays on European routes, transatlantic rates are starting to pick up and shippers are willing to pay extra for cargo to arrive faster or their cargo will be swamped in ever-increasing boxes." Current freight rates on the Nordic-US East route are rumored to be around $8,500/FEU.

In the week ending March 25, average freight rates on the Southeast Asia-U.S. East route were $17,000 to $18,000/FEU and Southeast Asia-U.S. West route rates were $15,000 to $16,000/FEU, unchanged from a week ago, but with some offers up significantly.

On March 25, PCR 25 (Platts Container Rate 25 Index, Southeast Asia-North America East Coast route) rates were valued at $10,500/FEU and PCR 23 (Southeast Asia-North America West Coast) rates were valued at $9,500/FEU, basically unchanged from the previous week.

On March 25, PCR 33, representing the India-West Coast-Middle East route, was valued at $2,300, up $200 from the previous week.