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Ocean Freight Rates 2022: Efficient Ways To Import Home Decor Wholesale

Updates About Current Ocean Freight Rates

Ocean freight rates on main trade lanes

Ocean freight rates have shown remarkable and significant surges for all trade routes since September 2020 and it still hasn’t shown any sign of going down due to ongoing impacts of the COVID-19 pandemic and inflation.

According to data provided by Freightos Baltic Index (FBX), as of March 3, 2022, global maritime transport continued to witness an increasing pattern on main trade lanes.

  • Global ocean freight rates ascend to $9,745/FEU.
  • Asia – US West Coast costs rose to $16,155/FEU, 204% higher than last March.
  • Asia – US East Coast rates witnessed an increase to $18,250/FEU, 218% higher than its level a year ago.
  • Asia – North Europe prices also reduced marginally to $13,509, which is 71% higher than the previous year’s pricing.
  • North Europe – US East Coast rates rose modestly to $6,886/FEU, roughly 228% higher than their previous level last March.
ocean freight rates 
Ocean freight rates updated in 2022 by Freightos Baltic Index (FBX)

Reasons for increased ocean freight rates

There are some key factors which led to the rise in ocean freight rates 2022 and also the delays of end-to-end days, such as:

  1. Lack of empty containers

When COVID-19 broke out, it brought along travel and transportation restrictions from every country into effect. Due to this reason, the delivery of everything has been interrupted which eventually results in the scarcity and unavailability of containers. When the demand soared but supply dropped, price will inevitably increase.

  1. Labour shortage

The Great Resignation has brought forth serious issues of labor shortage due to the outbreak of COVID. All industries are severely affected, including the logistics industry. The impact has led to a global supply chain crisis and its inability to operate as efficiently and proficiently as they were before.

Ocean Freight Rates 2022: Efficient Ways To Import Home Decor Wholesale
The scarcity of empty containers is a key cause for increasing ocean freight rates.
  1. New wave of COVID-19 in several countries

The world was not ready for Delta and now a new wave of COVID-19 (i.e Omicron) is appearing in several countries and continuing to spread widely; making it harder for the economy to bounce back. Due to this very reason, country borders are tightened along with new restrictions and lockdowns are required causing ocean freight rates to soar.

  1. Near Lunar New Year

Near Lunar New Year is when sales always hit the roof and products are in high demand. Many companies rush to have shipments delivered before the Lunar New Year Holiday. Together with scarce vessels, tight capacity and heavy restrictions on soaring demand, it all added up to ocean freight rates skyrocketing for a long time.

Ocean Freight Rates: Difficulties For Home Decor Wholesale Buyers

Prolonged transportation time

According to Freightos, transit time is now longer mainly because shipping vessels get clogged up at the start and destination ports, causing significant congestion. This also leads to shortage of empty containers due to heavy restriction forcing the vessels to sit at port while the stream of wares from Asia heightened. 

Transit time is now longer mainly because vessels get clogged up at ports.

Risk to the quality of home decor wholesale

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