Freight rates on European routes have plummeted, and shipping companies want to raise rates on American lines
The latest Shanghai export container Freight Index (SCFI) shows that the index has slipped to 2,963.38 points, down 134.25 points or 4.33% from the previous period, falling below the 3,000 point mark, and the freight price has fallen back to the level at the end of May. In terms of specific route performance, in addition to the US-West route, which barely maintained a slight increase of 3.11%, the European and Mediterranean routes suffered heavy losses, falling sharply by 11.91% and 9.73% respectively, while the US-East route continued to decline slightly by 1.25%.
Although the shipping company had planned to take advantage of the small peak season before the National Day holiday on September 15 to increase the freight rate of the US line, but the large freight forwarder is pessimistic about this, that it is difficult to achieve the price increase in the current market environment. In fact, many flights on the European and American routes have appeared less than 80% of the phenomenon, want to rise only to see whether the United States East on October 1 really strike.
Freight forwarding industry insiders said that in the case of oversupply of shipping capacity, shipping companies to adopt preferential prices, matching prices and other strategies to attract supplies, resulting in market chaos, the actual transaction price is far lower than the SCFI published price, overall, the current US line rate is basically hold or slightly down.
It is understood that in response to the continuing downward trend in freight rates, shipping companies are stepping up efforts to regulate accommodation, taking a series of measures including port hopping, empty sailing and replacing large ships with smaller ships to reduce excess capacity. In particular, on the US-West route, some overtime ships have also stopped operations in an attempt to stabilize freight rates.
Delury's latest data shows that in the 36th to 40th week, the trans-Pacific, Atlantic and Asia to Northern Europe, the Mediterranean route canceled a total of 68 trips, cancellation rate reached 10%, the trans-Pacific eastbound route canceled the most trips. With more outages expected ahead of the Golden Week due to slumping demand and falling freight rates, carriers are calling on shippers to prepare for emergencies.
Overseas media reported that a short-term freight quote obtained last week from Ningbo to Felixstowe was $5,000 per 40 feet, valid until September; Another UK-based NVOCC said it had received a freight offer from China to Southampton at $4,500 per 40ft.
Shipping companies have played the two trumps of the National Day holiday and a potential US-East strike, hoping to stimulate more demand for cargo and thus support rates. However, the current market is still facing a situation of less cargo and more excess capacity, the trend of freight rates is still declining, and signs of early shipment by shippers have not been observed.
Entering September, the industry will pay close attention to the dynamics of the strike in the East of the United States and the boost of freight demand before the Golden Week, and the shipping company plans to raise prices on the 15th in a timely manner, in order to counter the downward pressure by raising prices, at least to achieve the effect of stopping the fall.
However, industry analysts pointed out that due to the shortage of cargo and new shipbuilding continued to enter the market, coupled with the market gradually entering the off-season, and the Canadian railway workers and Indian dockworkers strike has been resolved, the overall freight rate trend is still bearish. Unless there is a strike in the eastern United States, the outlook for freight rates is not optimistic.
Latest SCFI Freight Index as at 30 August:
Far East to Europe freight at $3,876 /TEU, down $524, a weekly plunge of 11.91%;
Far East to Mediterranean freight at $4,083 /TEU, down $404, a weekly plunge of 9.89%;
The Far East to West America freight rate was 6140 USD /FEU, up 185 USD or 3.11% weekly;
The freight rate from the Far East to the United States East was 8,439 US dollars /FEU, down 107 US dollars, a weekly decline of 1.27%;
Persian Gulf route freight rate of 1,756 US dollars per box, down 213 US dollars, a weekly decline of 10.82%;
Australia and New Zealand route freight rate of $2235 per box, up $163 per week, a weekly increase of 7.9%;
South American route (Santos) $7698, down $136, down 1.80%.
Offshore line:
Far East to Southeast Asia route (Singapore) freight per box 497 US dollars, down 47 US dollars, down 8.63%;
Far East to Kansai, Japan, Far East to Kanto, Japan remained unchanged from the previous period, and Far East to South Korea fell slightly by $1 per TEU.
Although the shipping company had planned to take advantage of the small peak season before the National Day holiday on September 15 to increase the freight rate of the US line, but the large freight forwarder is pessimistic about this, that it is difficult to achieve the price increase in the current market environment. In fact, many flights on the European and American routes have appeared less than 80% of the phenomenon, want to rise only to see whether the United States East on October 1 really strike.
Freight forwarding industry insiders said that in the case of oversupply of shipping capacity, shipping companies to adopt preferential prices, matching prices and other strategies to attract supplies, resulting in market chaos, the actual transaction price is far lower than the SCFI published price, overall, the current US line rate is basically hold or slightly down.
It is understood that in response to the continuing downward trend in freight rates, shipping companies are stepping up efforts to regulate accommodation, taking a series of measures including port hopping, empty sailing and replacing large ships with smaller ships to reduce excess capacity. In particular, on the US-West route, some overtime ships have also stopped operations in an attempt to stabilize freight rates.
Delury's latest data shows that in the 36th to 40th week, the trans-Pacific, Atlantic and Asia to Northern Europe, the Mediterranean route canceled a total of 68 trips, cancellation rate reached 10%, the trans-Pacific eastbound route canceled the most trips. With more outages expected ahead of the Golden Week due to slumping demand and falling freight rates, carriers are calling on shippers to prepare for emergencies.
Overseas media reported that a short-term freight quote obtained last week from Ningbo to Felixstowe was $5,000 per 40 feet, valid until September; Another UK-based NVOCC said it had received a freight offer from China to Southampton at $4,500 per 40ft.
Shipping companies have played the two trumps of the National Day holiday and a potential US-East strike, hoping to stimulate more demand for cargo and thus support rates. However, the current market is still facing a situation of less cargo and more excess capacity, the trend of freight rates is still declining, and signs of early shipment by shippers have not been observed.
Entering September, the industry will pay close attention to the dynamics of the strike in the East of the United States and the boost of freight demand before the Golden Week, and the shipping company plans to raise prices on the 15th in a timely manner, in order to counter the downward pressure by raising prices, at least to achieve the effect of stopping the fall.
However, industry analysts pointed out that due to the shortage of cargo and new shipbuilding continued to enter the market, coupled with the market gradually entering the off-season, and the Canadian railway workers and Indian dockworkers strike has been resolved, the overall freight rate trend is still bearish. Unless there is a strike in the eastern United States, the outlook for freight rates is not optimistic.
Latest SCFI Freight Index as at 30 August:
Far East to Europe freight at $3,876 /TEU, down $524, a weekly plunge of 11.91%;
Far East to Mediterranean freight at $4,083 /TEU, down $404, a weekly plunge of 9.89%;
The Far East to West America freight rate was 6140 USD /FEU, up 185 USD or 3.11% weekly;
The freight rate from the Far East to the United States East was 8,439 US dollars /FEU, down 107 US dollars, a weekly decline of 1.27%;
Persian Gulf route freight rate of 1,756 US dollars per box, down 213 US dollars, a weekly decline of 10.82%;
Australia and New Zealand route freight rate of $2235 per box, up $163 per week, a weekly increase of 7.9%;
South American route (Santos) $7698, down $136, down 1.80%.
Offshore line:
Far East to Southeast Asia route (Singapore) freight per box 497 US dollars, down 47 US dollars, down 8.63%;
Far East to Kansai, Japan, Far East to Kanto, Japan remained unchanged from the previous period, and Far East to South Korea fell slightly by $1 per TEU.
