Prime Freight’s summary of a January 2021 report by The Loadstar. Read the original for the full story.
In January 2021 The Loadstar reported that large forwarders were bidding against each other for equipment and space on ships from China to North Europe, with carriers running tenders to sell slots to the highest bidder.
Carriers were inviting offers for end-January sailings from Shanghai, Ningbo, Qingdao and Yantian, and forwarder contacts said all-in bids below about $16,000 per 40ft high-cube to the UK, or $10,500 to Rotterdam, Antwerp and Le Havre, were unlikely to succeed. The SCFI North Europe component, which excludes such premiums, had risen another 9% to $4,452 per TEU, more than four times its level a year earlier.
Most forwarders expected rates to ease after Chinese New Year on 12 February, but nobody predicted a crash, and carriers expected high rates to last until August. Contract rates were also under upward pressure. On the transpacific, a consultant said premium space-protection charges added $2,500 to $3,000 per box on top of index rates, and Los Angeles port data showed imports due the following week at about double the previous year’s level.
What it meant for shippers
When space is auctioned, published index rates understate what shippers actually pay. In early 2021, securing capacity meant booking early, being clear about premium charges and being realistic about contract negotiations.