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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.

May 14,2024

After the May Day holiday, there was a significant customer demand storm in the container shipping market. Some customers urgently added 700-800 containers from China to South America to the shipping company, without shipping space. it was revealed that,Due to the shortage of space, the shipping company informed the customer that the contract signed this year would be renegotiated, otherwise there would be no space.The supply and demand roles of buyers and sellers are reversed.

This sudden increase in demand surprised people in the industry and was very different from the market situation before the May Day holiday. Specifically, last week, customers were eager to get 700-800 container shipping spaces to South America for electronic goods such as LCD TVs,This strong demand for goods has driven the in stock freight rate of 40-foot containers to soar, breaking through $10000.

according to industry insiders,At present, the shipping space for South America is full by the end of June, and customers have no shipping space even if they are willing to pay a higher price for 700-800 containers.Freight rates are expected to continue to rise this week.

Analysts believe that this phenomenon of demand surging may be related to the low inventory level of consumer electronics products. At the same time, the stability of Argentina's political situation and economy has also brought certain positive factors to the market. In addition, May-June is the peak season for South America to export fruits and other agricultural products to Asia, but the circulation of goods from China to South America is relatively flat under normal circumstances, and now customers are eager to ship, indicating that market demand has changed.

Judging from the data on the 10th, the Container Freight Index (SCFI) released by the Shanghai Aviation Exchange showed that the container freight rates on the routes from the Far East to South America have risen sharply. Among them, the freight rate of 20-foot containers is 5461 US dollars, and the freight rate of 40-foot containers is 10922 US dollars. The weekly increase is as high as 18.13 percent, and the increase is strong for several weeks. It also reflects the recovery of market demand and the tension of supply to a certain extent.

According to industry insiders, the sudden surge in demand in Europe, North America and South America is completely different from before the May Day holiday, and the speed and pace of change are amazing. Due to the strong market demand, customers have been informed that the contracts signed this year will need to be renegotiated, otherwise they will not be able to obtain space, and the supply and demand roles of buyers and sellers in the container shipping market will change this year.

At the same time, the April Manufacturing Purchasing Managers Index (PMI) released by the National Bureau of Statistics on April 30 showed that although it fell by 0.4 to 50.4 from March, it was still in the expansion range for two consecutive months and was better than market expectations. 50.3. This indicates that exports have begun to warm up, further confirming the trend of demand growth in the container shipping market.

Port crisis! Operations interrupted! Shipping giant emergency release......

"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...

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