Port proximity and administrative uniformity meant that raters from Asia to Europe and the UK were similar while the UK was a member of the EU, but UK rates rose sharply as its post-Brexit rules were introduced at the start of 2021.
“Shipping to the UK from the Far East is considerably more expensive than going to the continent,” said Xeneta Chief Analyst, Peter Sand.
In mid-February 2022, it cost around $15,350 per feu to ship a container from Asia to the UK on the spot market, more than $950 per feu more expensive than shipping to mainland Europe.
“This premium is, in fact, lower than it has been for many months, having topped at $1,995 per feu in March 2021. In 2021, you would have saved $1,400 per feu on average into North Europe instead of the UK, whereas in 2019 and the first half of 2020, the difference in rates was non-existent at $70 per feu,” said Sand.
While the short-term market premium for UK shipments peaked in early 2021 and has slowly fallen since, long-term rate premiums have fluctuated over the past year. The price difference peaked at over $2,300 per feu in the middle of 2021, before falling to under $500 per feu in late 2021.
“Long-term rates to the UK rose by close to $2,000 per feu as we entered the new year [2022], while those from the Far East to North Europe only increased by $200 per feu,” said Sand.
According to Xeneta data, rates for long-term contracts signed over the past three months stood at $11,359 per feu from the Far East to the UK and $9,408 for those going to North Europe.
Breaking down by the three main UK ports, Xeneta said that freight rates were lowest to Felixstowe on both the long- and short-term markets, while London Gateway was the most expensive on the long-term market and Southampton was the cheapest on the spot market.
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