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Freight rates are rising for the first time! European line after 5 months of continuous decline in sea freight rates rise!
Dec 23,2022
Data from the World Container Index (WCI) just released by Deluri showed that shipping prices from China to Northern Europe rose slightly for the first time since July.
The spot freight rate on the Shanghai-Rotterdam Nordic route rose 2% or $32 to $1706/FEU. The most recent peak was in the last week of July this year, when the spot price of a 40-foot container was $9154. Since then, freight rates have fallen for 20 consecutive weeks, with multiple double-digit declines.
Spot freight rates are different from long-term contract freight rates, and freight prices are constantly changing. Freight rates on the China-Nordic trade route were among the worst affected in the autumn, with the strike causing bottlenecks and chaos at several European ports.
The latest Dreary WCI Composite Index fell 0.3 per cent this week to $2120/FEU, slowing the decline. This is the 43 consecutive weeks of decline, which is down 77% compared to the same period in 2021.
On the US-West trade route from Shanghai to Los Angeles, spot freight rates fell slightly again this week, or $1992/FEU, on the basis of a slight increase in the previous week.
The US-East route from Shanghai to new york fell 1.6 percent this week to $3889/FEU.
Judging from the container freight index SCFI released by the Shanghai Shipping Exchange in the previous period, the decline also narrowed, namelyU.S. and Western freight rates stopped falling, while European and Mediterranean routes rose slightly.. In the case of low freight rates, the United States and the West fell slightly by 0.49, the Mediterranean route showed two consecutive periods of small gains, and the European line rose slightly by 0.29.
In early 2022, a number of container shipping companies predicted that the high freight rates caused during the epidemic would return to normal in the fall; however, the rate of sharp declines on some routes remains surprising, while facing the question of when they will bottom out.
Vincent Clerc, who will be Maersk's chief executive, said that with the energy crisis, freight rates have fallen much faster than we expected.
In mid-December, Rolf Habben Jansen, CEO of Germany's Hapg-Lloitt (Hapag-Lloyd), said optimistically that when looking at the market at present and at the end of the year and the Chinese New Year, a slight recovery in demand can be expected.
Previously, shipping companies in response to the U.S. line in January freight pre-surge of $1000, industry analysts said,At present, the U.S. and West have fallen too much below the cost price, and there may be a small increase. The U.S. East and European lines are still some distance away from the cost price and will continue to decline., while the Vietnam line has seen a $1 bottoming freight rate.
Although there is still one-year contract protection discussed last year in 2022, the contract price is expected to be greatly reduced by the signing of new European contracts at the end of this year and early next year, as well as the signing of US contracts from April to May,In 2023, shipping companies will not make as much money as before, and it is estimated that profits in 2023 will be more than 7-80% lower than in 2022.
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