Sea freight rates hike upto 800% on reduced capacity

Sea freight rates have increased up to 800% in some routes — a 100% increase than in October last year (700%) — due to reduced available capacity on shipping lines and container shortage, based on recent feedback received by the Malaysian National Shippers’ Council (MNSC).
MNSC chairman Datuk Dr Andy Seo said as an open trading nation like Malaysia, over 90% of the international trade volume is being carried through international sea transportation. He stressed that the skyrocketing sea freight rates coupled with the increasing commodity prices and labour shortages in both the manufacturing and logistics services sectors as a result of the pandemic has caused prices of imported business inputs and export costs to soar.
“Shippers face difficult decisions daily on whether to ship and incur high export costs or not to ship and lose their export markets. Major shippers in Malaysia are now exporting on ‘Free on Board’ basis as they are no longer able to cover the high freight costs and now must rely on the freight services determined by the overseas buyer.” said Seo.