As the crisis continues, sea container prices are evidently on the rise, with Transpacific rates increasing by 56% this week compared to the week before, according to Lee Klaskow, senior logistics analyst for Bloomberg Intelligence, referring to Drewry’s Hong Kong-Los Angeles benchmark figures.
Meanwhile, Freightos data reveals that spot rates on routes from Asia to the US East Coast and Europe have surged significantly over the past week.
Source: Freightos
Will rail freight benefit from the crisis?
Due to the increase in sea transport rates, the popularity of China-Europe rail connections has surged again. The number of inquiries has recently increased, as reported by operator New Silk Road Intermodal Co. Ltd. This is expected to result in an increase in rail transport rates.
Spot freight rates for services to Europe are projected to exceed 20% in January compared to the previous month.
Currently, platforms like Chengdu and Chongqing have a competitive advantage in terms of booking prices. The reservation price for Xi’an Express has risen to over $6,000, with most places already sold out.
Meanwhile, spot freight rates from Yiwu to European terminals such as Duisburg and Hamburg have skyrocketed to around $6,200, with few slots available to book in the first ten days, adds New Silk Road Intermodal.
A prosperous year on the New Silk Road
In December, China Railway published a summary of the first eleven months of 2023, recording record freight volumes on scheduled Sino-European rail services.
During the analysed period, a total of 1.749 million TEU of goods were transported in 16,145 regular Sino-European trains, representing an increase of 7.0 percent and 19 percent, respectively. The volume of freight transport in the first 11 months of 2023 exceeded the total volume of transport in all of 2022.
Asia-Europe freight trains currently connect China with 217 cities in 25 European countries.