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Period : 28th May 2018 – 2nd April 2021
Date : 3rd April 2021
Researcher : Marsella Ismail
Source : Freightos Baltic Index (https://fbx.freightos.com/freight-index/)
Global Average Rates of Ocean Freight
As of 2nd April 2021, the global average rate of ocean freight is $4,164. From the graph, we can see that the rate from May 2018 to May 2020 is stable and starts to escalate from June 2020 and doubles up from December 2020 until March 2021. The highest freight rate for this whole period is $4,302 (26th Feb 2021) and the lowest is $1,227 (1st June 2018). Overall, the freight rate has increased by 237% from the start of the period to the latest. This is due to the increase of freight rates from China/East Asia to North Europe and also from China/East Asia to North America East and West Coast.
Ocean Freight Rates for Far East Region
(China/East Asia ↔ North Europe)
From the graph, we can see that the route China/East Asia to North Europe has a steady rate from May 2019 and gradually increases from November 2020. It peaks at the rate of $8,430 on 19th February 2020 and slowly decrease until the end of March.
In the first quarter of 2021, the average rate is $7,729 and we can see an increase of 26%, starting with the rate of $5,923 on 1st January and ending with $7,485 on 26th March.
Whereas on the returning route from North Europe to China/East Asia, the graph shows a consistent increase within the range of $400 to $1600. The average rate of the whole period is $1,064, with the lowest of $469 (5th July 2019) and the highest of $1,553 (12th March 2021).
In the first quarter of 2021, the average rate is $1,465 with a percentage change of 12%, starting with the rate of $1,372 on 1st January and ending with $1,530 on 26th March.
Ocean Freight Rates for Pacific Region
(China/East Asia ↔ North America East Coast)
The freight rate as of 2nd April 2021 for the route China/East Asia to North America East Coast is $5,735. Based on the graph, the freight rates are consistent from May 2019 to May 2020 and starts increasing from June 2020. The highest is on 15th January 2021 with the rate of $5,983 and the lowest is on 29th November 2019 with the rate of $2,536. The percentage change from the beginning to the end of the period is 108%. Whereas in the first quarter of 2021, the average rate is $5,653. There is a 6% increase from January to March.
For the route North America East Coast to China/East Asia, the latest freight rate is $810. Based on the graph, the highest rate is $1,293 which is on 9th August 2019 and the lowest rate is $416 which is on 21st February 2020. In the first quarter 2021, the average rate is $847. There is a 34% increase from January to March.
Ocean Freight Rates for Pacific Region
(China/East Asia ↔ North America West Coast)
The latest freight rate for the route China/East Asia to North America West Coast is $5,156. Based on the graph, the freight rates are steady from May 2019 to May 2020 and starts increasing from June 2020. On 25th Feb 2021 is the highest with the rate of $4,922 and the lowest is on 31st May 2019 with the rate of $1,241. The percentage change from the beginning to the end of the period is 294% with an average rate of $2,465. In the first quarter of 2021, the average rate is $4,411 and there has been a 17% increase from the beginning of the year to the end of March.
For the route North America West Coast to China/East Asia, the latest freight rate is $738 on 2nd April 2021. Based on the graph, the highest rate is $887 which is on the 22nd of January 2021 and the lowest rate is $353, which is on 20th March 2020. The average rate for the whole period is $508 whereas the percentage difference from beginning to end is 41%. In the first quarter of 2021, this freight rate for this route shows a 35% increase from 1st January to 26th March with an average of $756.