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Ocean Freight Rates Continue to Skyrocket in 2021

The rising transportation costs have become a burning issue, hitting many sectors and businesses across the globe. As predicted, we will see ocean freight costs skyrocketing further in 2021. So what factors will influence this rise? How are we doing to cope with that? In this article, we will give you a closer look at the soaring freight rates globally.

Ocean freight rates continue to set new highs in 2021

Ocean freight rates have soared greatly for all trade routes since September 2020 due to the ongoing impacts of the COVID-19 pandemic.

The freight rates in August reached $10,174/FEU, an increase of 466% on the previous year. Also, the charter prices for container vessels have risen fourfold compared to last August, according to the Freightos Baltic Index (FBX).

ocean freight rates have tripled 1
The ocean freight rates in all trade routes have tripled. (Credit: FBX)

From the data of FBX Freightos, as of July 2021, transpacific rates continued to set new record highs on most trade lanes.

  • Asia-US West Coast rates shot up to $18,346/FEU, more than 6x its level a year ago.
  • Asia-US East Coast costs climbed to $19,620/FEU, 487% higher than last July.
  • Asia-North Europe prices rocketed to $13,706/FEU, which also rose by more than 250% in the comparable period last year.

What’s more, transatlantic rates were increasing in July 2021, particularly on the lanes from Europe to America East Coast.

  • Europe to North America East Coast prices were up by 6% to $6,013/FEU, triple their level a year ago.
  • Europe to South America East Coast rates increased 56% to $3,311/FEU, nearly four times their level last year.
Ocean freight rate continues to increase dramatically until Q4 2021. (Credit: F