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Period : 1st Jan 2020– 30th Oct 2022
Date : 5th Nov 2022
Researcher : Esther Low
Source : Freightos Baltic Index https://fbx.freightos.com/freight-index/
Global Average Rates of Ocean Freight
Global container freight rates have continued to ease since March 2022. The highest
reported freight rates were in Sep-21 where freight rates hit $11,109. With growing
concerns of economic uncertainty and stronger USD, demand for goods is expected to ease
and this is reflected in the freight rates which as of 30 th Oct is at $3,343, down 70% from
September 2021’s high.
Ocean Freight Rates for Far East Region
(China/East Asia ↔ North Europe)
Ocean freight rates for routes East Asia/China to North Europe have eased significantly as
well in the month of September till October 2022. Freight rates for the route has eased
from $9,128 to $4,861 (down 46.7%).
Meanwhile rates for return route from North Europe to China/East Asia experience a
similar downtrend as well. Freight rates have eased by 32.9% from $551 to $371.
Ocean Freight Rates for Pacific Region
(China/East Asia ↔ North America East Coast)
Freight rate for the China/East Asia route to North America east coast continued to decline
from Aug 22 to Oct 22. The freight rates have since come off by 67.3% from $17,342 in May
22 to $5,678 in Oct 22.
For the return route North America East Coast to China/East Asia, freight rates remains
firm between the ranges of $800 - $1,000.
Ocean Freight Rates for Atlantic Trade
(Europe ↔ North America East Coast)
Freight rates for the Atlantic trade routes North Europe to North America east coast have
ease although not as significant as the freight rates for other routes. Freight rates have
come down from $8,349 in Sep 22 to $7,041 in Oct 22 (down 15.7%)
Meanwhile for route North America east coast to North Europe, freight rates have dropped
from $756 at the beginning of August 22 to $511 towards the mid of August. However, it
has since rallied upwards towards the end of August 22. As of 31 st of Aug 22 freight rates
were $604.
Freight market outlook
According to Maersk Asia Pacific market update, the global economic conditions that
continue to worsen due to record inflation, fall in global manufacturing exports, and
Russia-Ukraine conflict hitting market sentiment making consumers concerned over the
higher prices of goods. For this reason alone, slowdown in demand of goods will likely
pressure container shipping leading to more downwards pressure on the freight rates.