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Red Sea bypass will be lifted? European line shipping futures plunge, shipping company stocks plunge
Jun 12,2024
In the face of the decline of European line transportation, some netizens commented that "the highest point has appeared," and some netizens said, "the two days before the long carnival, this is all covered."
influenced by the un security council's first adoption of a resolution in support of the gaza ceasefire plan on 10 June,The main contracts and futures of the Shanghai European Line Container Line Index both fell sharply in early trading on June 11.This trend also led to a corresponding decline in the share prices of container shipping companies, with Evergreen, Yangming and Wanhai falling 9.4 per cent, 9.89 per cent and 8.31 per cent respectively, and Yangming even closing at a limit price. COSCO HATC fell 10 per cent, South Korea HMM fell 4.94 per cent, while Maersk and Germany's Hapg-Lloitt, which just opened in European stocks, also fell more than 4 per cent.
In the June 11 deal,European line container futures opened high and went low, experiencing a significant dive in the session.. In particular, the main European line transportation contract (EC2408) fell more than 9% at one point in the day, and the far-month contracts EC2410, 2412, 2502 and 2504 also touched the limit at one point. However, the decline eventually converged, with quotes on the main contract and other futures contracts falling by between 3.48 and 10.39 per cent.
The United Nations Security Council passed a resolution on the afternoon of June 10, local time, calling for an "immediate, comprehensive and complete" ceasefire in the Gaza Strip to end the eight-month Palestinian-Israeli conflict. Hamas issued a statement welcoming the UN Security Council's vote on the Gaza-related resolution.
The Red Sea crisis triggered by the eight-month Palestinian-Israeli conflict has led a large number of ships to choose detours, thus digesting some of their capacity, leading to a dramatic reversal in the shipping market from excess capacity to higher freight rates. The rise from the European line all the way to the United States line, the end of April Europe and the United States began to replenish inventory, coupled with the Red Sea crisis to lengthen the transportation time, prompting cargo owners to ship ahead of schedule, exacerbating the ship tight, lack of containers, plug port pressure, so far making almost the entire route freight rates soared.
According to Reuters, Hamas responded with pleasure and stated that it was ready to cooperate with the mediators. However, despite this positive response, neither Israel nor Hamas has formally accepted the resolution.
But...Container ships have already entered the shipping space and goods competition ahead of schedule in June. With the arrival of the peak season ahead of schedule, not only will the comprehensive rate surcharge (GRI) be added in June, but shipping companies have also announced that the peak season surcharge (PSS) will be imposed one after another before July.
In addition, the use of containers in the global port has been prolonged, and the problem of "one box is hard to find" has intensified. The container turnover rate has reached its limit. Although Evergreen and Yangming still have sufficient boxes, they have recently made emergency arrangements to accelerate the transfer of empty containers back to Asia. They have also simultaneously requested customers to help improve the container turnover rate. If the reasonable use period is delayed, there will be an additional charge.
executives of the international container shipping company pointed out that,Containers will be pulled away if they cannot return to the empty container yard. The shortage of containers will become more obvious in the next few weeks and months, and empty containers will not be found for additional money.
According to the analysis of the shipping industry, the reason for the lack of containers is not only because the ship must bypass the Cape of Good Hope and lengthen the container period,Ports in the Mediterranean region are also unable to accommodate so many ship calls in a short period of time, and major port terminals are facing serious congestion problems, resulting in container delays.
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