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"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...

May 14,2024

The shipping market is characterized by a clear off-peak season, with freight growth generally accompanying the shipping season. Recently, the industry has set off a wave of "price increases" in the off-season ". Maersk, Dafei, Hapg-Lloth and other head shipping companies have issued price increase letters, a few days ago has begun to issue a new round of freight rate adjustment notice in June...

"The shipping space at the end of May is basically gone. Now there is only demand and no supply." The person in charge of a large-scale freight forwarding company told China Business News that a large number of containers were "wandering outside", the port was seriously short of containers, and "one cabin is hard to find" reappeared. Under such a shortage, price increases seem logical. "In early May, the U.S. line (freight rate) was almost 4100 U.S. dollars per container (40-foot container). It has risen twice in a row, each time by about 1000 U.S. dollars!" He estimates that the price increase will continue and will soar to more than $5000 in late May. This also means that the increase in freight rates will be doubled.

Market analysts pointed out that the current market idle capacity is limited, especially in the context of the Red Sea detour, the current capacity is relatively insufficient, and the detour effect is becoming more and more obvious.

Judging from the performance of current in stock freight rates, the Shanghai-Rotterdam route in Europe and the United States had a liner company quotation range of US $4040-5554/FEU on May 10, a significant increase from the quotation range of US $2932-3885/FEU on April 1. Similarly, on the US line, the freight rates from Shanghai to Los Angeles and Long Beach ports have also increased significantly. The highest quotation on May 10 reached 6457 US dollars/FEU.

Behind this wave of price increases is the superposition of multiple factors. Continued tensions in the Red Sea have led to container ships having to circumnavigate the Cape of Good Hope in Africa, prolonging their voyages and occupying a large number of ships and containers.

The deployment of capacity by shipping companies has also exacerbated the tight supply situation. In addition, with the increase in the risk of strikes in Europe and the United States and other places, the tightness of maritime supply has further escalated. In the face of such a severe shipping situation, foreign trade enterprises and freight forwarders feel unprecedented pressure. They said that the price hike has led to a sharp rise in business costs, and even forced some businesses to be canceled or postponed. The backlog of goods is serious, and the delay of delivery has become the norm, which undoubtedly brings great trouble to the operation of foreign trade enterprises.

In this wave of shipping prices, some people also see opportunities. Container manufacturing enterprises and shipping companies seem to have ushered in the spring. With the recovery of container business, the performance of these enterprises is also expected to be improved.

For foreign traders, the impact is also intuitive. Recently completed production of goods had to delay delivery, a serious backlog. "Whether it is the Middle East or Europe, or South America, the goods to various places are basically delayed!" Mr. ding, a foreign trader, told first finance and economics that at present, the delivery of about 4 cabinets has been delayed, and the latest is nearly one month later than the original schedule. "what was originally to be delivered in late April has not been delivered yet". The slow delivery will inevitably correspond to the slow return of orders and will probably affect the scale of subsequent orders.

Compared with the "uncomfortable" of freight forwarders and foreign trade people, the days of shipping companies and container manufacturers seem to be comfortable again.While Maersk laments that there are fewer orders for new ships, the latest boom in the container industry has returned to the boom range from the original transition range.

The Red Sea situation around the impact of cumulative! Freight rates "crazy" rise

Behind this wave of "madness", it is still attributed to the imbalance of the "balance" between supply and demand-one end is the shortage of capacity supply, and the other end is the rebound of market demand.

The reasons for the tight supply are multiple. The most important thing is that the impact of the detour caused by the situation in the Red Sea continues to accumulate. Freightos agencies believe that container ships circling the Cape of Good Hope has led to a tightening of capacity in large shipping networks, even affecting the freight rates of routes that do not pass through the Suez Canal.

Since the beginning of this year, the situation in the Red Sea has continued to be tense, so that almost all container ships have to abandon the Suez Canal route and bypass the Cape of Good Hope in Africa. This corresponds to a longer sailing time, about two weeks longer than before, and also allows a large number of ships and containers to float at sea.

Affected by the geopolitical conflict in the Red Sea, global ships are forced to bypass the Cape of Good Hope, which not only significantly increases the transportation time, but also leads to major challenges in ship scheduling. Ships sailing in Europe every week have brought great trouble to customers due to their different sizes and sizes.Traders in Europe and the United States have also begun to lay out their stocks in advance to avoid the problem of tight shipping space in the peak season of July and August. .Industry insiders said that they did not expect the market demand to be so large after the May Day holiday. Previously, in order to cope with the May Day holiday, shipping companies generally increased the proportion of blank flights by about 15-20%. This has led to a shortage of space on North American routes in early May, and the space is now full by the end of the month. Therefore,Many planned shipments can only wait for the June shift.

South America is in a rush to grab cabinets! Freight rates soar above $10000! No matter how high the freight rate is, there is no shipping space. It will be full by the end of June.

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

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