The indefinite extension of the Shanghai lockdown is causing a significant slowdown of operations at the city’s major air and ocean ports due to labor shortages. In addition, there is a drop in the availability of goods with manufacturing and warehouses closed, and trucking availability is significantly disrupted.
As more airlines cancel flights, the Freightos Air Index shows Shanghai – N. Europe air cargo rates climbed to $11.92/kg last week, a 43% increase compared to just before the recent outbreaks.
Congestion is also growing at Shanghai’s ocean ports as well as at nearby alternatives like Ningbo. Despite closures, transpacific ocean rates have remained stable so far, unlike the outbreak in Yantian last May that sent rates climbing days after the shutdown began.
Asia – N. Europe prices went unchanged this week too, though a possibly inflation-driven decrease in demand has pushed Asia – N. Europe rates down by 20% since early this year to their lowest level since July.
Asia-US rates for this week:
|Containerized Freight Rates from the Freightos Baltic Index|
|FBX Lane||Global||Asia – US West Coast||Asia – US East Coast||Asia – North Europe||North Europe – US East Coast|
|* Compared to the corresponding week in 2021|