Global freight pricing per container is approaching $10,000 again after slightly recovering from record-high rates in August 2021.
For context, two years ago the rate was closer to $1400. Rates from China to the US are even approaching $18k per container these days.
The data is based on the Freightos Baltic Index (FBX) which reflects the spot rates for 40-foot containers on 12 major trade lanes.
What's causing this uptake?
- The spread of the Coronavirus variant Omicron, especially in India and China, has disrupted global supply chains causing container prices to spike by +10% across major ports around the globe in January alone.
- The Russian invasion of Ukraine has sent ripples through financial markets around the world. The conflict is now showing first signs to impact freight rates as scenarios for higher tanker, dry bulk, and container shipping rates (that were considered low probability just a few weeks ago) suddenly look more plausible.
For example, military action could curtail ship movements in the Black Sea, a key transit point for dry bulk exports.