US-China 40-Foot Container Freight Rate Surpasses $20,000 'All-Time High'

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 5th (local time) that the 40-foot container freight rate between the US and China surpassed $20,000, breaking the all-time high.

According to Drewry, a UK shipping consulting firm, the US-China 40-foot container freight rate recorded $20,804 this week. This is more than a 500% increase compared to a year ago. The US-China container freight rate was below $11,000 as of the 27th of last month, but due to multiple factors, it doubled in a short period.

The southern region of China was affected by a typhoon at the end of last month, and the rapid spread of the Delta variant in some countries has lowered container turnover rates, fueling the rise in container freight rates. As the US year-end shopping season approaches, the supply chain crisis is intensifying.

Philip Damas, director at Drewry, said, "Shipping companies usually demand container freight rates 4 to 10 times higher," and added, "We expect the high container freight rates to continue until the Chinese Lunar New Year holiday next year."