Asia to US Ocean Freight Rates Are Up 11% - But Not on Every Route
Ocean freight rates continue to climb over the last couple of months; however, not every trade lane is following the same trend.
According to the Starboard Freight Index, ocean freight rates from Asia to the US increased by 11% since early August, while rates from Asia to Canada are up by 9%. Both reached their peaks in the week of September 28 and have eased slightly since then.
However, there's more to the story than just that. While some lanes continue to see increases, others are experiencing downward movement.
Here's what the latest ocean freight rate trends show.
1. Ocean freight rates depend on where you're shipping
Rates aren't consistent across all trade lanes.
India to the US rates have risen 14% since early August, making it one of the biggest increases. Meanwhile, rates for US exports remained unchanged over the same period.
When looking at individual lanes, the differences are even more noticeable.
For example, Ho Chi Minh City to St. Louis rates are up nearly 19% over the past 30 days, while Guangzhou to Cleveland is down almost 16%.
This makes a big difference depending on where you ship to, and it should be taken into account when quoting customers.
2. Some ocean freight rates are falling while others keep climbing
Even within the same broader market, some rates might move in one direction while others move in another.
For example, the routes from Southeast Asia to the US West Coast, such as Jakarta to Long Beach and Semarang to Long Beach, increased by approximately 13% over the past month.
Meanwhile, several routes from Guangzhou to inland US destinations like Memphis, Columbus, and Cleveland decreased by 16% to 18%.
If you're quoting customers across different trade lanes, it's worth checking the specific route rather than assuming the broader market changes apply to every shipment.
3. The difference between FCL shipping quotes can actually be bigger than you think
Not all providers offer the same rate even in case of the same lane.
One example of this trend shown by the Starboard Freight Index involves the Xiamen to Omaha route, where the quotes for a 40HC container range from $9,000 to $17,250. That's an $8,250 difference.
Comparing your quote with the market benchmark can help you identify unusually high or low rates before sending the price to your customer.
4. Benchmark your ocean freight rates
When you have a freight quote to prepare, sometimes it can be difficult to know whether your rate is competitive enough. Rates can be drastically different from one trade route to another, and quotes for the same route can vary by thousands of dollars.
With the Starboard Freight Index, you can benchmark your rate against the average ocean FCL rates across over 2,000 trade routes, see the fluctuation in rates, and have a better understanding before sending the quote to your customer.
It's free to use and updated on a daily basis.
Try the Starboard Freight Index →
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