Mid-value products ‘getting priced out’ of ocean freight
Some significant commodities such as furniture and electrical appliances can no longer afford the elevated freight rates facing importers currently on major container shipping lanes, new analysis by Sea-Intelligence has revealed.
A number of significant lower-value commodities such as furniture and large electrical and electronic appliances are becoming ‘priced out’ of major intercontinental ocean freight markets because of the elevated freight rates facing importers currently, new analysis by Sea-Intelligence has revealed.
In its latest Sunday Spotlight briefing, the Copenhagen-based container shipping consultant looked at the impact on importers of a variety of different consumer goods of the current elevated freight spot rates on the Asia to US West Coast and North Europe trade lanes.
Its analysis took the average values of consumer goods held within a 40’ container based on data from OECD, compared to an average of four of the more well‑known spot rate indices (XSI, SCFI, FBX, and WCI) for spot rates. It then placed these freight rates in the context of the retail value of the cargo, followed by adding in the carriers’ newer surcharges related to equipment availability and space priority.
To read the complete article click here