News

Industry Information

Hongde Dynamic

Export knowledge

Home page

Nightmare! Freight rates soar to $10000! Even if you pay the highest freight, you can't book a cabin.

May 09,2024

The freight forwarder issues a warning to the customer,Demand for Asia-Europe shipping is beginning to show a trend similar to the peak of the epidemic.

A British freight forwarder said the speed and pace of change was staggering, again recreating the tensions at the peak of the epidemic. The forwarder warned that,Shipping companies have canceled FAK rate quotations when making bookings and are also cutting contract capacity.

"The current situation is a nightmare for importers," the freight forwarder described, "Demand has climbed and our customer base has increased by 10-20% year-on-year. Either customers are replenishing their inventory, or they need an additional two weeks of transportation buffer stock due to the long transit time around the Cape of Good Hope."

Scan Global Logistics also issued a warning to customers that,Asia's westbound seaborne freight rates are "soaring". The company stated:Continued capacity demand, blank sailing plans and pessimistic forecasts of the Red Sea crisis have combined to drive the rapid rise in ocean freight rates.

Shipping companies are implementing peak season surcharges and GRI for "long-term and short-term contracts", and Hapg-Lloyd, Mediterranean Shipping and Dafei have all announced increases in sea freight rates from the Far East to Europe. However, the British freight forwarder revealed that,The freight rates announced by the shipping companies were quickly withdrawn again, as they had been replaced by higher prices.

“Most of the current shipping companiesThe FAK, spot booking and mechanism are now closed until June or later, so customers cannot book even if they are willing to pay higher prices.The freight forwarder said.

unrelated routes were also affected,For example, freight rates on the Asia-Latin America route have risen sharply, now at $9000 to $10000 per 40 feet., capacity is being shifted to more profitable routes.

In addition, the rate levels of contracts and in stock began to diverge, with long-term contract rates far different from short-term rates, some even more than $3000 per 40 feet DC. Shipping companies are increasingly prioritizing and loading higher-revenue cargoes to cushion dismal financial results in 4Q23 and, to some extent, mediocre results in 1Q24.

Container shortages, prices climb

Part of the problem also stems from a shortage of containers.. Container Xchange customers said that although inventory levels did not put significant pressure on warehouses,But container prices are "continuing to climb, adjusting about every 48 hours".This is mainly due to the uncertainty associated with the Red Sea situation and the desire of suppliers and sellers to hedge their risk.

The price of a 40-foot container has climbed from $2200-2300 in April to the current $2500-2700. The detour to the Cape of Good Hope has absorbed a "considerable number" of containers, and a considerable number of containers have been stranded in the area. Due to the high cost of transportation, the relatively low cost of storage and the fact that the containers themselves are approaching their useful life, it may not be feasible from an economic point of view to ship these containers.

Scan Global asked customers to "understand" the current predicament, which it expects to continue through May. the british freight forwarder further emphasized that,The new capacity addition has not had a positive impact on the current predicament, nor has it played a role in the return of containers to Asia.

The company warned that this was only the beginning of an explosion of capacity shortages and the acceleration of further northward movement of maritime transport, and that even paid participation might not be able to save the crisis. However, the company also pointed out that,Demand is likely to fall as fast as it grows, and the market is expected to fall faster than it rises after China's October gold week.

"I can't grab the box!" June 1 ushered in a new wave of price increases; nightmare! Freight rates soared to $10000; another $2000 in half a month! By the end of May, the shipping space is full...

Sudden! The Israeli port was attacked by missiles! Trade was interrupted and the shipping company announced a suspension of booking.

Recommend

Hongde International | Iran Railway LCL Service, 1CBM Minimum Shipment, Ideal for Small Cargo

No Panic for Fast Fashion Seasonal Changes! US Air Freight + Express Door-to-Door, 1-2 Working Days Delivery

Make global trade unimpeded

COOKIES

Our website uses cookies and similar technologies to personalize the advertising shown to you and to help you get the best experience on our website. For more information, see our Privacy & Cookie Policy

COOKIES

required

These cookies are necessary for basic functions such as payment. Standard cookies cannot be turned off and do not store any of your information.

analyze

These cookies collect information, such as how many people are using our site or which pages are popular, to help us improve the customer experience. Turning these cookies off will mean we can't collect information to improve your experience.

Feature

These cookies enable the website to provide enhanced functionality and personalization. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

advertise

These cookies help us understand what you are interested in so that we can show you relevant advertising on other websites. Turning these cookies off will mean we are unable to show you any personalized advertising.

Contact Phone

18027165010

Address:

5/F, Building 22, Youli Electric Business Park, 199 Guangming South Road, Shiqiao Street, Panyu District, Guangzhou City