Container freight rates from Asia have continued to surge, reaching highs far in excess of long-term sustainable levels.

December Index (SCFI) hit a new record of 2,311.71, representing a 162% increase on the same week last year.

North Europe now lead in terms of percentage increase, 230% higher than a year ago, while rates to Mediterranean ports put on 29% to breach the $3,000 mark.

The SCFI recorded an increase of $104 for spot rates to the US east coast, to $4,804 per 40ft, representing a 91% hike on the same week of last year, while rates to the west coast a vast 188% increase on the SCFI reading of a year ago.

On other secondary trades, the SCFI recorded spot rate increases across the board, with, for example, rates from Asia to South Africa up 15% on the week to $2,289 per teu – 130% higher than 12 months ago.

Acording to our supply chian manager, Li Hui, one of the main reasons for the increase in rates is due to the shortage of containers that are arriving in Asia. "The logistics companies we have been working with for several years have teold us that the situation may not improve in the coming months and that the high rates are very likely to continue.

At Smad we are committed to our clientele and therefore we are working on solutions to be able to offer our clients alternative solutions for their already place orders and for the upcoming ones.