- The Freightos Baltic Global index surged 43% month-on-month in May, reaching $3,413/FEU. This is two and a half times higher than 2019 levels and nearly matches the peak rates seen in February due to Red Sea disruptions.
- The increase in demand for ocean freight out of Asia, coupled with ongoing supply chain constraints caused by Red Sea diversions, is driving these high rates. This strain is causing, increased port congestion, more frequent port omissions, delays and missed vessel departures and, reduced availability of empty containers at export hubs
Transpacific Rates
- Rates from Asia to the North American West Coast jumped 59% to $4,915/FEU, returning to February’s peak levels and almost quadrupling those of 2019.
- East Coast rates also rose significantly (48%) to $6,297/FEU, exceeding 2019 levels by 140% but remaining 7% below February’s peak.
Europe and Mediterranean
- Demand growth from Asia to Northern Europe and the Mediterranean suggests potential restocking activity as European economies recover.
- Rates to Northern Europe increased 45% to $4,882/FEU, reflecting a 256% increase compared to 2019.
- Rates to the Mediterranean rose 32% to $5,637/FEU, exceeding 2019 levels by 219%. However, both routes remain below their Q1 2024 peaks.
Looking Ahead
- Carriers are announcing additional rate hikes for June, indicating their expectation of sustained demand and challenging market conditions.
- Significant General Rate Increases (GRIs) and Peak Season Surcharges are likely if current market conditions persist. This could push rates even higher than the January-February peaks, when pre-Lunar New Year demand coincided with Red Sea disruptions.
- Shippers can expect several months of elevated rates and extended delays until peak season pressures subside, possibly earlier than usual. Even then, rates are likely to remain at least as high as the Red Sea-adjusted floors observed in March and April.
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Source: Baltic Exchange
