Supply chain challenges continue to worsen, exacerbated by higher levels of port congestion and shipping delays at ports in Shanghai and elsewhere in China due to Covid-19 lockdowns. Coupled with ongoing congestion at ports elsewhere in the world and low backhaul rates to Asia, container demand is far exceeding capacity.

Container shipping rates departing Asia also remain significantly elevated over routes inbound to Asia from the US and elsewhere. This differential in freight rates, along with severe delays at ports, has disincentivized carriers from taking shipments from the US, Europe, or elsewhere to Asia, with disproportionate negative impacts for agricultural exports.

The most recent Freightos Baltic Index average price on 6 May for a 40-foot container from ports in China/East Asia to North America West Coast was $14,226. In contrast, the 6 May price from ports in North America West Coast to ports in China/East Asia was $991. The average rate from ports in China/East Asia to ports in North Europe was $10,565, compared with $754 in the other direction. The average rate from ports in China/East Asia to ports in the Mediterranean was $12,538, and only $1,528 in the opposite direction.Source: ihsmarkit.com