Ocean shipping rates on the major ocean trade routes have tumbled more than half from the beginning of the year, according to The Wall Street Journal.
The start of the fourth quarter is typically the industry’s peak season, but many importers have already shipped their holiday goods earlier in the year while rising inflation rates reflect the decline in consumer demand.
The Freightos Baltic Index, which measures the cost to ship a container overseas, is now at $5,286, down from $9,293 in January.The cost to ship a 40-foot container from China to the U.S. Pacific West Coast is currently down 68 percent at $4,797 from $14,977 in January, according to the shipping index.
A container shipped from Asia to Europe now costs $9,142, over 40 percent less than at the start of the year, but the rate for both key routes still remains above pre-pandemic levels.
In 2019, the average cost to send a container across the Pacific to the U.S. West Coast was $1,500.
