The container shipping market entered the traditional peak season, and the US line freight rate took the lead in the rebound, leading the Shanghai Export Container Freight Index (SCFI) to stop falling and recover.
Different routes due to their respective supply and demand fundamentals are different, the trend of differentiation. The rate per 40 feet container on the West side of the United States increased 26.14 percent, while the rate on the East side of the United States increased 12.42 percent.
The surge in U.S. freight rates has left airlines and cargo owners facing higher shipping costs that they have to pass on to consumers to maintain profits and stable operations.
Freight rates on European routes are stable, but a number of shipping companies have announced that FAK rates will be increased on August 1, and it is expected that European routes will also show an upward trend in early August, ushering in a wave of sprint.
That could further escalate tensions in the global seaborne market.
U.S. freight rates rebounded
According to the Shanghai Shipping Exchange, the overall capacity of routes in the East of the United States has been reduced, and the imbalance between supply and demand in the early stage has been significantly improved. The overall load rate of some airlines has recovered, and some flights are fully loaded.
The load factor on the West US route has also picked up, reaching 90%-95% levels. Last week, most airlines raised their rates in response to market conditions, and market rates rebounded somewhat.
The freight rate from Shanghai to West America was US $1771 /FEU, up US $367 or 26.14%;
The freight rate from Shanghai to the Eastern United States was $2,662 /FEU, up $294 or 12.42%.
Market analysts said that after entering the traditional peak season, the cargo volume of the US line has increased, and the cargo load in July has increased slightly compared with May and June. In addition, the container shipping company continues to reduce space and shift, and small and medium-sized ships exit the market. In mid-July, the container shipping company successfully increased the freight rate, increasing GRI 400-450 USD /FEU.
However, there is still uncertainty about the extent of this year's peak season recovery, and it remains to be seen how much freight rates will rise this round and how long it will last.
European losses narrowed
According to the Shanghai Shipping Exchange report, the overall economic environment in Europe has not improved greatly, and some recent economic data are generally stable from the previous month.
The supply and demand of routes remained stable, with the load factor of some flights above 95%, and the market freight rate stabilized, basically the same as the previous period. For Mediterranean routes, the market trend is in step with that of European routes, and the spot market booking price is basically the same as that of the previous period.
The freight rate from Shanghai to Europe was 738 USD /TEU, down 2 USD or 0.27%;
Shanghai-mediterranean rates fell $1, or 0.07%, per $1,412 /TEU.
Industry insiders pointed out that demand in the European market is sluggish, but European freight rates have seen the decline convergence, there may be a chance to recover at the end of July.
Previously, shipping companies Maersk, CMA, Hapag-Lloyd and so on have announced the increase of FAK rates from Asia to Northern Europe on August 1.
Every 20 feet container rose to $1025- $1050, every 40 feet container rose to $1900- $1950, in the spot market freight rate conversion, up as much as 30%, 50% respectively, this is the first increase in European lines this year, and warned that other routes may also increase rates.
Prospects for freight rates on European and American routes
In the United States:
Due to THE cancellation of many flights between the United States and the West, the price increase at the beginning of this month only fell by $100 in the second week, and then increased by $400 to $450 on the 15th of this month, while the Ocean Alliance is also rumored to further cut flights.
With the end of the strike at ports on the west coast of Canada, it remains to be seen whether this round of price increases will be successful and how much they will fall next week.
In addition, the shipping company is planning to charge a peak season surcharge of $600 per large case on August 15th.
European line:
Europe's serious inflation, economic conditions are not good, into the third quarter of the peak season, cargo volume is still hovering at a low level.
The actual cargo load situation is not good, nor has it seen a significant reduction in shifts, as the time for price increases has not yet arrived, freight rates are still depressed. However, the difficulty of freight rates in early August may be higher than the United States line, how much can rise to be tested.
However, many shipping companies, freight forwarding said that the actual volume of goods in the current European and American markets is not much, the strength of support for freight rates is limited.
Measures to deal with rising freight rates
This shift in the seaborne market has important implications for global trade and the economy. Maritime transport is an important part of international trade, and goods transported by sea account for a large proportion of global trade.
Therefore, the increase in freight rates will directly affect the supply chain costs of all industries, which will have a ripple effect on commodity prices and the global economy.
For cargo owners and shipping companies, they need to take effective measures to cope with the challenge of rising freight rates. On the one hand, they can reduce transportation costs by optimizing the supply chain and the organization of goods.
On the other hand, they can also carry out cooperation with shipping companies to seek better cooperation models and price negotiations to reduce transportation pressure.
