When a shipping line announces a freight rate increase, it is easy to assume that every shipment will cost more. In practice, the announced rate, the market index and the offer available for your cargo can be three different numbers.
MSC has announced a freight all kinds (FAK) rate of $4,500 per 40ft container from the Far East to North Europe for 1-14 November. That is the same level it announced for the second half of October.
Meanwhile, actual offers can be lower. On 27 October, The Loadstar reported that, according to shipping analyst Linerlytica, some carriers were offering early-November North Europe rates of around $3,000-$3,500 per 40ft container. Those offers may differ in route, availability and included charges, but they show why an announcement alone is not enough to budget a shipment.
An index is a reference, not a quotation
Freight indices help buyers follow the market, but they are not prices available for every shipment.
For example, Drewry assessed the Shanghai-Rotterdam spot rate at $3,632 per 40ft container on 22 October, up 3% from the previous week. A quote for a different Chinese port, European destination or sailing date may look different.
When comparing offers, check the route, validity period and included charges. A lower ocean freight rate does not necessarily mean a lower total cost once local charges, surcharges and inland delivery are included.
Price is only part of the decision
Carriers are also cancelling sailings. Drewry reported eight announced blank sailings on Asia-Europe for the week of 26 October, up from two the week before. A blank sailing removes a scheduled departure and can push cargo onto a later vessel.
For a shipment that needs to arrive by a certain date, it is worth checking the planned vessel and departure with the forwarder, as well as what happens to the booking and rate if the sailing is cancelled.
At Berg, we consider freight alongside the supplier’s production schedule and the full cost of getting goods to their destination. A competitive product price matters, but so does knowing when it can be shipped and what the shipment will actually cost.
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