Shipping freights from Ho Chi Minh City to the US East Coast rose by nearly 17% within a week, to 8,849 USD per 40-foot container, while prices to Japan, South Korea, and China concurrently decreased.

Departing from the exact same Ho Chi Minh City, each route carries a single price

Freight rate records on the Phaata International Logistics Exchange demonstrate that the Vietnam Container Freight Index (VCFI) rose by 11.9% compared to the previous week, to 3,449.5 points; the average freight rate reached 4,862 USD/container during the phase from June 29 to July 5.

For instance, the route from Ho Chi Minh City to the US West Coast rose by 18.9%, to 7,214 USD/container, representing the sharpest increase among the 13 monitored routes.

Compared to three months ago, the price increased by over 200% and is currently sitting at its highest level in a year.

Freights to the US East Coast reached 8,849 USD/container, up 16.7% within the week.

This constitutes the route possessing the highest price in the VCFI system, climbing 51% compared to a month ago and nearly 150% compared to three months ago.

The two routes to the US contributed over 361 points to the general index's total increase of nearly 366 points. In other words, the market's heat over the past week primarily concentrated on vessels traveling to the US.

According to Phaata, many enterprises are accelerating deliveries prior to the US tariff policy milestone on July 24. When cargo volumes are gathered within a short period, booking demands expand rapidly, generating conditions for shipping lines to elevate prices.

The fact that freights rose by an additional thousands of USD/container inflicts massive pressure on enterprises that signed export contracts beforehand. Selling prices are usually difficult to adjust immediately, while the incurred freight portion may have to be borne by the seller.

With live fresh cargo, risks remain even larger. Delayed vessels or altered schedules do not merely drive up warehousing and yard demurrage costs but can also directly affect commodity quality.

Phaata evaluated that the upward surge on routes to the US may carry a timely nature. After early delivery demands pass by, cargo volumes possess the possibility to contract and freight rates may leave the peak zone.

Freights to Europe also continued to rise but at lower rates than the group traveling to the US. The route from Ho Chi Minh City to Northern Europe reached 5,714 USD/container, up 4.4% within the week. The route traveling to the Mediterranean rose by 4.4%, to 7,073 USD/container. Both reside at their highest levels in 52 weeks.

European freight rates anchor high because many shipping lines still avoid the Red Sea and the Suez Canal due to security concerns. Vessels must sail around the Cape of Good Hope, causing voyages to stretch out, consuming additional fuel, and reducing the count of operated trips.

Even so, subsequent quote periods have shown signs of dropping. Phaata projects that freights to Northern Europe may decrease by 2.1% in the coming week, while the Mediterranean route drops by 3.7%.

Vessel freights for intra-Asia legs concurrently decrease

In contrast to the US and Europe, intra-Asian routes began to cool down after multiple weeks of increases. Freights from Ho Chi Minh City to Japan decreased by 19.8%, down to 511 USD/container, marking the sharpest decline among the 13 routes. The route to South Korea dropped by 7.5%, down to 443 USD/container.

Freights to China decreased by 5%, dropping to 162 USD/container, the lowest in the system. The Southeast Asian route slightly dropped by 0.9%, down to 510 USD/container.

Prices decreased despite a number of large ports in Asia remaining congested. According to Phaata, the current state of waiting for vessels merely helps freights from dropping deeper but remains insufficient to generate a new upward surge.

Other markets also experienced divergence. Freights to Brazil decreased by 8.6%, down to 8,645 USD/container, but still belong to the highest group.

Conversely, prices to Australia rose by 9.7%, climbing to 2,452 USD/container; South Africa rose by 9.2%, reaching 4,147 USD/container; East and West Africa rose by 1.9%, climbing to 5,382 USD/container.

The route traveling to the Middle East continues to temporarily suspend transactions within the index system due to maritime security risks.

Fluctuating vessel freights, what do enterprises need to note?

Mr. Nguyen Hoai Chung, Founder and General Director of Phaata, argued that the composite index currently reflects the pulling force of routes traveling to the US more than the market's general trend.

The projected price for the subsequent week merely rises by around 1.4%, significantly lower than the current week's 11.9% increase. This demonstrates that the upward momentum is narrowing and no longer spreading wide.

Phaata recommends enterprises traveling to the US and Europe to prioritize short-term contracts, booking early for crucial shipments but restricting the locking of long-term prices in high zones. With intra-Asian routes currently decreasing, enterprises can break down demands, monitor additional quotes, and renegotiate with shipping lines or freight forwarding units.

Source: Bao dien tu Tuoi Tre