Ocean Freight Rates Spiking Again

Since early May, global ocean freight container rates have been increasing steeply. The Drewry World Container Index (shown above) has increased nearly 400% since mid-December. The rapid increases exist from Shanghai to Los Angeles, Rotterdam, Genoa, and New York (see graph below).

The causes for the current spike are numerous:

• Troubles in the Middle East, specifically the Suez Canal, which about 30% of global trade counts on.
• The drought happening in the Panama Canal region.
• Labor contract negotiations are happening for dockworkers on the East and Gulf Coasts this summer.

As of July 18^th, the composite index inched up 1% to $5,937 per 40ft container last  week and has increased 286% when compared with the same week last year. The latest Drewry WCI composite index of $5,937 per 40ft container is 43% below the pandemic peak of $10,377 in September 2021, but remains 318% higher than average 2019 (pre-pandemic) rates of $1,420. Drewry expects ex-China rates to remain high throughout the peak season.

More information on the Drewry World Container Index can be found here.

All images: Drewry.co.uk, Drewry World Container Index

David Shiller

David Shiller is the Publisher of LightNOW, and Senior Business Development Consultant at Capacity Consulting, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has been co-chair of the ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.

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