Shipping Rates for Hong Kong to LA Reach Five-Year Highs: Retailers Are Expecting Higher Sales
NY Times -- "Fighting for freight, retailers are outbidding each other to score scarce cargo space on ships, paying two to three times last year’s freight rates — in some cases, the highest rates in five years. And still, many are getting merchandise weeks late.
The fight for space means many retailers are expecting higher sales, which is a glimmer of good news. And air carriers are picking up some last-minute shipments from desperate retailers; FedEx reported on Monday that it expected increased earnings for its first quarter, ending next month.
The cost of shipping a 40-foot container from Hong Kong to Los Angeles without a contract, or the spot rate, was about $871 in July 2009, a five-year low. This month, that spot rate reached $2,624, a five-year high. That exceeded even the cost before the recession, which was about $2,000."