Sea freight rates dropped sharply

Posted onAugust 22, 2024by VPA

22
Aug

Information from the Vietnam Maritime Administration shows that global shipping rates are trending down, creating favorable conditions for export businesses.

In particular, in August 2024, transport routes from Asia to the West Coast of the US and Europe recorded the sharpest decrease, ranging from 20 - 30% compared to the previous month.

Compared to the peak period in September 2021, when the global supply chain was seriously disrupted due to the COVID-19 pandemic,  ocean freight rates  have decreased by up to 44%.

Notably, each week freight prices decrease by an average of 3 - 4%, reflecting a stable downward trend in prices and is expected to continue in the near future.

Mr. Nguyen Thanh Tuan,  director of  Blue Sea Commercial Shipping Company (Phu Nhuan District, Ho Chi Minh City), said that although freight rates have cooled down, they are still high compared to before the pandemic.

Specifically, shipping rates from Europe are around 6,000 - 8,000 USD/40-foot container, from Asia to the West Coast of the US range from 5,000 - 6,000 USD/container. The US East Coast route alone remains high, ranging from 9,000 - 10,000 USD/container.

Similarly, Mr. Nguyen Hoai Chung, CEO of Phattaa - Vietnam's international logistics exchange - also said that freight rates from Asia to North America have dropped to 6,356 USD/40-foot container, down 1.52% compared to with the beginning of August and decreased by 19.28% compared to the previous month.

According to Mr. Chung, adding more ships on the trans  -Pacific trade route  has helped reduce space pressure, especially at ports in the southwest Pacific.

Also according to the Vietnam Maritime Administration, shipping rates will continue to decrease in the near future, after congestion at major ports around the world has been completely resolved.

This is a golden opportunity for  export businesses  to take advantage of lower transportation costs to boost business activities, expand markets and seek strong growth in the last months of the year.