Freight analytics platform Xeneta says that recent claims from the International Longshoremen’s Association (ILA) regarding rising ocean freight rates could be “misleading.”
In a September 30 release, the union — which represents tens of thousands of dockworkers at East and Gulf Coast ports — asserted that carriers “are gouging their customers,” alleging that it now costs $30,000 to ship a single container, and representing “a whopping increase from $6,000 per container just a few weeks ago.”
“In just a short time, they went from 6K, to 18K, then 24K and now $30,000,” the ILA said. “It’s unheard of, and they are doubling their $30,000 fee, stuffing the same container from multiple shippers.”
According to data from Xeneta, average spot rates from the Far East to the U.S. East Coast are actually averaging around $7,000 per forty-foot equivalent unit (FEU), as of October 1. And while spot rates from Northern Europe to the East Coast have risen by 50% since the end of August, those prices are still sitting around $2,800 per FEU.
“The union is representing its members and clearly has grievances to raise, but muddying the waters with misinformation does nothing to help resolve the situation,” Xeneta chief analyst Peter Sand said. “It cannot be ruled out that one desperate shipper has paid $30,000 in a very extreme example, but this freight rate is certainly not representative of the market.”
The ILA went on strike for the first time in 47 years on October 1, effectively shutting down U.S. East and Gulf Coast ports. The union has been locked in a standoff with the U.S. Maritime Alliance (USMX) for months, after negotiations over a new collective bargaining deal stalled out in June. The union has voiced concerns over the use of automation at ports, while labeling proposed wage increases from the USMX as “stingy.”
