Of all input costs in the sector (eg costs for energy, fuel, packaging material and raw materials), the price increase for transport was one of the best. Last year, the Freightos Global Container Index rose 123% to $9.806 per container. Prices have now fallen slightly, but the challenges will certainly remain great this year.
A one-way ticket from East Asia to the North American east coast quickly amounted to $16.781 per container last year. And for transport from China to the European Union, an average of $14.999 per container had to be tapped last year. Today prices are slightly lower; the World Container Index of Drewry will be $3 per forty foot container on Thursday, February 9.376. While this is a 0,5% decrease from last week, the container price remains 79% higher than the same week last year. The costs for transport from Asia are still the highest.
Freightos for transport from Asia to the west coast of the United States reports a price of $15.218 per container (-2%). Transport to the eastern United States currently costs about $16.659 per container (-1%). Drewry is talking about prices of $10.571 and $13.125 per container for the same route. In short: there is more peace on the market. That calm is caused by the Chinese New Year. Container prices usually rise in the run-up to that holiday. That this is not the case now, according to analysts, has to do with the fact that prices are already ten times higher than normal. Delivery times have risen sharply. Waiting a week is not a problem this year.
The challenges remain
At the same time, the problems in the ports of Los Angeles and Long Beach are still not over. A lot of effort is being made to find a way to deal with the blockages. In addition to extending opening hours and fining ships that dock too long, a new idea has now been suggested. Every available empty container must be returned to Asia as soon as possible. It should no longer matter whether this is a container from a competing party. The hope is that this will speed up the transition.
Although the average price for container transport has fallen again this week and there is some calm, the challenges for the food business remain great. Analysts expect the problems in the supply chain to continue well into 2022. Analysts also see more and more problems for the longer term, such as the shortage of truck drivers. It is not expected that this problem will even be solved this year. According to the United Nations, logistical problems have now become a problem mainly for the poorest countries, where they can contribute 1,5% to general inflation.