State of Freight Far East to U.S. ocean freight rates are up between 36%-41% month over month, while air freight prices have jumped 9% this year. DHL says ocean freight rate inflation might not ease up before Chinese New Year in early 2025, with some forecasts seeing rates reaching to between $20,000 and a Covid era peak of $30,000. Longer Red Sea transits resulting in a shipping container capacity shortage and canceled sailings from Asia are stoking spot ocean freight rates. Demand alone cannot explain the price hikes, with ocean freight orders down 48% month over month. Joe Giddens – Pa Images | Pa Images | Getty Images
Just as the Federal Reserve and U.S. economy get good news on inflation, with consumer prices and wholesale prices softening, a major global trade inflation indicator is headed in the wrong direction. Rising freight rates are a new source of concern in the global supply chain with forecasts warning that ocean cargo prices could reach $20,000 — potentially even touch the Covid era peak of $30,000 — and stay there into 2025.
Spot ocean freight rates from the Far East to the U.S. popped between 36%-41% month over month, and ocean carriers increased additional charges known as general rate increases by roughly 140%, according to the CNBC Supply Chain Heat Map. These costs have taken the price of a 40-foot cargo container to about $12,000.
“This index data confirms what we are seeing from our data and hearing from shippers,” said Paul Brashier, vice president of global supply chain for ITS Logistics. A lack of containers and limited vessel
