(FREIGHTWAVES) – Just how high can Asia-U.S. West Coast spot rates go? They blew past $3,000 per forty-foot equivalent unit (FEU) in early August and have been climbing ever since. They've just topped $3,700. Can they reach $4,000?
No one predicted that the container industry would be doing this well, this quickly.
"We've been scratching our heads a lot, trying to figure out why ocean freight prices have climbed so high," commented Eytan Buchman, chief marketing officer of Freightos, on Wednesday.
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The bullish view is that import demand will continue to surprise to the upside. Ocean rates evidence a U.S. economic rebound. COVID erased demand for some products and services, but increased demand for other products. Storefront sales won't recover, but e-commerce sales will offset storefront losses. Government support will counter shutdown fallout.