China Container Average Freight Index makes steep climb in May

THE China Containers Average Freight Index (CCAFI) posted by www.shippingchina.com, showed that rates from China ports continued to rise in May, even doubling on some trade lanes year on year, Xinhua reported.

Experts say higher rates will reduce, if not eliminate, shipments of low-value goods and encourage a rise in export prices, dampening sales and having an adverse effect on economic recovery, as well as spurring inflation.

According to shippingchina.com, the freight rate index on China-US routes was 2,470 points in May, up nearly 200 points from the 2,309 points in April and nearly doubled compared to the 1,838 points in the same month a year ago.

The slot shortage has been on the American and European lines at the port of Shanghai since early April. The freight rates have also been increasing.

An unnamed person from a trading company in Qingdao said that all carriers have been raising rates lately. The cost of shipping to the Middle East has doubled in a month. Plus other surcharges like document fees, terminal handling charges, emergency bunker surcharges, these have added costs, a prompting talk of increasing export prices.
(Source:www.schednet.com)