Container priority-loading premium the new normal in Asia as shippers struggle for space
Go premium or go home is the new motto in the Asian container markets, with shippers struggling to get hold of ships and carriers assuring availability only when customers pay a premium over the Freight All Kind, or FAK, market sources said.
The premium can range from 50% to 70% over the FAK rate, or between $2,000/forty-foot equivalent unit and $3,500/FEU for Southeast Asia to US and Europe routes, according to market sources.
These premiums come on top of the recent runup in container spot freight rates, where prices to North America from Asia have risen nearly three-fold over the last six months to a record high of $5,300/FEU on Feb. 8. Container rates to Europe from Asia are also at an all-time high of $8,500/FEU Feb. 8 compared with $1,700/FEU in September 2020.
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Bird Song of the Day
The sound on this a bit low, but it really reminds me of the prairie.
#COVID19
At reader request, I’ve added this daily chart from 91-DIVOC. The data is the Johns Hopkins CSSE data. Here is the site.
Resuming the upward climb, though at a lesser slope. Looks like the Midwest did it, from the regional data, with now a little help from the Northeast. I feel I’m engaging in a macabre form of tape-watching, because I don’t think the peak is coming in the next days, or even weeks. Is the virus gathering itself for another leap?
Persistently tight containers market expected into 2021 as contract talks evolve hellenicshippingnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from hellenicshippingnews.com Daily Mail and Mail on Sunday newspapers.