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Freight rates on many routes are rising! The European line rose 40.6 percent, with no space in the direction of the U.S. line.
Nov 03,2023
Affected by the reduction of global container ships, coupled with the recovery of demand after the November holiday, a number of routes have recently exploded, of which the US route is the most popular, with the phenomenon of explosive cabin price increases.
In addition, the four major ocean routes also rose across the board.Among them, the European line as a result of the previous decline is too large, this week's rebound increased, soaringUS $188, up more than 30%, and US-West up nearly 1%.
European freight rates rise
Last week, Ningbo Shipping Exchange released the Maritime Silk Road Index of Ningbo Export Container Freight Index.(NCFI)Received728.3 points, up 11.5 per cent from last week.
Seventeen of the 21 routes rose and four fell.Among the major ports along the "Maritime Silk Road", the freight index of 12 ports rose and the freight index of 4 ports fell.
European routes.Last week, freight rates on European routes rose sharply. The European route freight index is493.5 points, up 40.6 per cent from last week.
The freight rate index of the ground east route is647.8 points, up 16.1 per cent from last week. The Dexi route freight index was 762.8 points, up 20.7 per cent from last week.
North American routes.The US-East route freight index is784.4 points, up 3.5 per cent from last week;The West Route Freight Index is1104.4 points, up 9.7 percent from last week.
Middle East route.The overall shipping space of the route is still tight. Last week, the market booking price continued to rise, but the increase was narrower than that of the previous two weeks.The Middle East Route Index is907.8 points, up 11.5 percent from last week.
Australia and New Zealand routes.Destination market demand remained strong, the route loading rate remained high, and the market booking price rose sharply last week.The ANZ route index is1338.8 points, up 20.9 percent from last week.
to this,Xeneta CEO Patrik Berglund said,In 2023, global long-term freight rates fell by nearly 60%, and both short-term and long-term freight rates fell by about 80% across the Atlantic to the East Coast of the United States and the Far East to Europe.
Freight rates are so low that container shipping companies are effectively subsidizing businesses to ship goods around the world.
At the same time,Berglund believe that large container shipping companies will not allow this to continue,Shippers who will try to push up freight rates and sign long-term contracts at lower prices may be the first to be affected when the market turns.
For unprofitable barges, shipping companies take every opportunity not to ship these customers' containers.
At the same time, industry executives believe that,Xeneta's assessment is not without merit,If the Russian-Ukrainian conflict ends next year, the container shipping market is likely to see a big flip.
The delivery of post-war reconstruction supplies, the reduction of energy prices, the increase in consumer confidence in Europe, and the improvement of the economy are all expected,The current low freight rates are expected to recover significantly by then.
U.S. Line Burst Cabin Price Rise
A few days ago, according to the Caixin News Agency, there are market rumors that the US line, the Middle East line, the Southeast Asia line and other routes in the shipping market have exploded.
Through multi-party understanding, confirm the existence of this matter, the current price of these routes have rebounded trend. In addition, the listed cargo owner said that the direction of the U.S. line.There is no shipping space at the end of October.
According to feedback from the person in charge of the U.S. line, the U.S. line has exploded to No.46 weeks (I. e. mid-November), while some shipping giants announced an increase in freight rates of $300/FEU.
According to the traditional freight rate trend in the past, the price difference between the US West and the US East should be$1000/FEU,In early November, the spread range may be narrowed to $200/FEU, which also confirms the situation of the US-West explosion from the side.
At the same time, a number of industry insiders said in an interview,Although there are multi-directional route explosions, this is basically the reason why liner companies reduce ship capacity.
"Liner companies want to stabilize next year's (long-term association) freight rates, so they are shrinking capacity to raise freight rates at the end of the year."
On the U.S. line, in addition to the liner company's reduction of shipping space, there are also reasons for the concentration of demand from U.S. black five and Christmas cargo owners.
"In previous years, the Christmas shipments of black 5. on the US line were mostly in the peak season of July-September,However, this year, there may be factors for shippers to wait and see the Christmas consumption in the black 5., as well as the current Clippers from Shanghai to the United States, which have been delayed.”
On the North American route, due to the lackluster performance of transportation demand, some airlines adjusted their capacity supply by reducing shift control cabins,The utilization rate of shipping space remained good, the supply and demand fundamentals remained stable overall, and the market freight rate remained basically stable.
On the South American route, close to the traditional shipping season, the balance of supply and demand is good, this week the market freight rate rose.
On the 20th, the market freight rate (sea freight and sea freight surcharge) exported from Shanghai Port to the basic port of South America was 2164 USD/TEU, up 12.6 per cent from the previous period.
For the U.S. line demand side, the industry is relatively optimistic, that next year will be improved,However, due to the large number of capacity deliveries next year, the performance of U.S. freight rates next year remains cautious.
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