American Port Congestion Expected to Persist and Freight Rates Up

: 2021-05-28

918 Views

It is expected that the port congestion in America is going to persist and freight rates will continue up.

The traditional shipping season is approaching, but the congestion in American ports has not yet eased. Now the port of Oakland has surpassed the ports of Los Angeles and Long Beach, becoming the center of congestion. It is expected that the port congestion in America is going to persist and freight rates will continue up.

Shipping giant Maersk warned in a customer consultation on Wednesday that the ports of Los Angeles and Long Beach are “still tense due to the average ship waiting time of one to two weeks.”But he said,“The situation at the Port of Oakland is even more severe, and the waiting time there is now extended to three weeks."

Delays at ports on the west coast of the United States havea serious impact on liner arrangements. According to data from Sea intelligence Maritime Analysis, a total of 121 flights to the West Coast and 21 flights to the East Coast have been canceled since January 1.

U.S. imports from Asia have set or approached record levelsfor 10 consecutive months, which is a factor driving up freight rates. Another factor is the "structural" suspension. The flight was canceled because the ship was delayed by a week or more in the US and Asian ports and therefore missed the planned rotation.

According to the freight rate index of Drewry, a maritime analysis agency, the spot freight rate for a 40-foot container from Shanghai to Los Angeles has been between US$5,600 and US$5,700 this spring. But it soared to US$6,000/FEU in mid-April and reached 6358 US dollars/FEU this Wednesday.

News of International Logistics & Shipping Industry

American Port Congestion Expected to Persist and Freight Rates Up

More Contents

Shanghai Containerized Freight Index (SCFI) Rises for 3rd Week in a Row

Maersk Restarted Direct Bookings to Ukraine by Providing New Barge Services

Falling Container Import Volume Hit US Ports With a Predicted Improvement in the Latter Half of This Year