Our traffic light update has turned red across all trades, except Intra-Asia and the current freight rate development mirrors that of the COVID-19 pandemic days. The latest SCFI update today shows an average price on Asia to North Europe of USD 7.898/40’, and as we speak, the coming weeks show no relief for shippers across the globe. A similar picture is apparent on the Trans-Pacific trade from Asia to the US, and also here, there is no outlook for short-term improvement.

Capitalising on the situation all ocean carriers have imposed General Rate Increases (GRIs), Peak Season Surcharges (PSS) and an array of other charges. The current situation yet again also puts a spotlight on the difference in rate levels between short and long-term rates. However, it is also worth noting that allocation cuts are being made on long-term rates as well, forcing all shippers into the short-term market or alternatively accepting revision of rate levels.