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  Last week, it was reported that the container spot freight rate of trans Atlantic route from northern Europe to the east coast of North America has returned to the pre epidemic level. According to the latest data, the spot freight rate of popular routes from Asia to Europe and Asia to the United States has also fallen further from a record high, but it is expected to remain high for a while.

  According to the freightos Baltic index, the freight rate from Asia to northern Europe 40'cabinets fell 3.3 per cent a week to $8037, but freight to Mediterranean ports fell only $37 to $7925.

  In addition, many shippers are still forced to pay additional fees to ensure the availability of containers, and for British ports, an "outbound fee" of $2000 is usually added.

  A year ago, the FBX index in northern Europe and the Mediterranean was $1453 / feu and $2101 / feu, respectively, and freight rates are still at high levels so far.

  Meanwhile, across the Pacific, the FBX index fell 13 per cent to $4283 per feu on the west coast of the United States, and 2.5 per cent to $5673 per feu to the east coast port. Freightos expects that this decline is temporary given the strong demand for trade.

  Last week, at least 35 to 40 ships were parked near the west coast of the United States. Congestion in U.S. ports continues and continues to spread to ports outside North America.

  Jon Monroe of worldwide logistics said that the shortage of labor caused most of the traffic congestion due to the infection of covid-19 by more than 700 skilled quay workers in Los Angeles / long beach area, adding that the storage space of the seaport has been exhausted, the trucks at the door are queuing long and the frame is in short supply.

  "This situation is difficult to resolve quickly due to the complexity of the port of Southern California. Of course, 45 to 50 per cent of the imports of the United States are transported through Los Angeles and long beach ports. " Jon Monroe added.

  Meanwhile, according to the freegtos Baltic index, freight outside Asia has declined since the end of February, and the spot freight of the East Pacific Bank has dropped from $4922/feu on February 26 to $4197/feu on March 4. However, by March 5, spot freight again soared to $4709 / feu.

  Lori Cheung, an overseas marketing expert at China based MRF international forwarding, said shipping companies "do their best to the best of their ability" because shipping companies expect the market to eventually return to normal to some extent.

  "At the moment, the carrier appears to be more willing to sign long-term contracts with BCO rather than freight forwarders," he said, suggesting that shipping companies are trying to lock contract prices as high as possible to withstand spot market volatility.

  In addition, Judah Levine, head of freightos research, said: "although the freight rate is falling, it will remain very high for a while." "Since the U.S. retail inventory level is still low, it may take until the end of the year to return to normal levels."

  At the same time, sea intelligence, a shipping consultancy, concluded that the surge in container rates could continue until the spring of 2022, "the surge in container rates and the high demand for container ships and container equipment may last at least until next spring." The freight rate on the US route may rise by another 25 per cent.

  According to sea intelligence, an analysis firm, said in a recent report that if sales are in line with the usual trend, the U.S. retail industry needs to continue replenishing inventory in the coming months. Considering the current retail sales situation in the United States, the inventory of the retail industry in the United States is at a historical low.

  Sea intelligence also said that half empty warehouses in the U.S. retail industry could also be good news for container shipping companies to support the continued development of the market in 2021.

• [Editor:Catherine Ren]