Following on from my last blog on this topic on 30 Dec, as expected, the rates spiked in the lead up to Chinese New Year (3rd-9th February 2014). The index jumped USD 250/TEU (USD 500/40GP) in early January which was a big increase, especially as there'd been a USD 600/TEU increase (USD 1200/40GP)in mid-December 2013.
So, as we went into Chinese New Year, and as we predicted, rates were in the USD 3500-3900 per 40 foot range from base ports such as Shanghai, Hong Kong etc and not only that space on vessels was incredibly tight.
The reason for my blog today is, have you checked what your current freight costs are today, as they could still be in this range, and depending on which forwarder you are working with, your February rates are most likely the same as January.
Given that the Jan-Feb rates are almost double the November level, I'd suggest you take action because you could be burning cash unnecessarily.
If you don't know what you're paying, do check, because you'll be hit with a cost which can't be challenged in about 5-6 weeks from now, as the rate is set when the container is booked.
We've already begun negotiations with our partner forwarders from Asia and have already seen significant reductions for our growing Asia-UK portfolio.
Straightforward Consultancy Ltdwww.straightforwardconsultancy.co.uk