Less travel translates into higher demand for consumer goods, drives up freight rates: Flexport

[SINGAPORE] Higher fuel prices have helped fan a surge in demand for fast-moving consumer goods in the US and Europe as more people cut back on their overseas holidays due to increased airfares.

This, in turn, has driven up ocean freight rates. Sea freight rates have spiked up to three times in general since the Middle East war erupted as oil flows out of the Gulf were reduced to a trickle. This has caused the prices of oil – including jet fuel and marine fuel – to rocket.

The Shanghai Containerized Freight Index was up 9.5 per cent week on week on Friday (Jun 12) after a 16 per cent rise the previous week. It covers 13 export trades out of Shanghai, and is the world’s most widely used index for spot market ocean-freight rates for Chinese imports.