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Shipping costs are going up again! Five major shipping companies raise freight rates!
Aug 09,2024
According to industry insiders,Many major shipping companies in the world, including COSCO, MSC, CMA CGM, EVA Evergreen and ONE, are planning to increase their freight rates on the west and east coast routes of the United States from August 15, with an expected increase of 9% to 15%.
It is reported that in terms of specific adjustment details, several major container shipping companies have issued notices to customers,It said that the freight will be increased by US $1000 on the US-West and US-East routes from August 15.However, it is worth noting that the freight rate announced by Maersk on its official website showed no signs of rising before the end of this month, and the freight rate of the non-shipping alliance has dropped to the range of US $4500-4600, indicating that the price increase is facing certain difficulties.
Although the container shipping market has recently shown a complex situation of long and short interweaving, the most direct manifestation is that the Shanghai Container Export Freight Index (SCFI) has fallen for four consecutive weeks, with a monthly correction of up to 10%, and it has fallen by 3.3 in the past week. 3332.67 points. Specifically,Freight rates on the Far East to the US-West route fell sharply by 6.3 per cent to $6425 per FEU, making it the largest decline among the four major indices,This is mainly due to the influx of small ships intensifying competition in the market.
At the same time, freight rates from the Far East to the Mediterranean also fell 5.2 per cent to $4997/FEU, the second largest decliner. Despite a month-long correction in freight rates, the shipping market is still facing a severe shortage of containers and vessels, given that SCFI has risen for 13 consecutive weeks and is currently in the traditional peak season for global container shipping. Large fluctuations in freight rates on the Far East to the US-West route,Part of the reason is that the route's high freight rates have attracted near-ocean operators to put in small ships to compete, thus lowering the level of freight rates.In addition, the tension in the Middle East and the gradual recovery of freight volume after mid August are also the key factors that prompted the five major shipping companies to decide to increase freight rates.
However, it is worth noting that despite the price increase expectations, the current peak season performance of container shipping is relatively stable, and the capacity of the Panama Canal is gradually recovering. It is expected that it will be fully restored in September, which will drive the total capacity to 1.6 million TEU. The price poses further downward pressure. The current market situation shows that freight rates are still at a high level. Compared with last year, the August freight data released by SCFI showed that the freight rate of the US West Line rose from US $2002 to US $6245, while that of the US East Line soared from US $3013 to US $9346, with an increase of more than three times, showing a very high level of profitability.
However, shipping companies are concerned about the rapid decline in freight rates and are actively developing price increase strategies to slow this trend. Recently, the freight rate of the eastern line of the United States has dropped significantly. Industry analysis believes that this is mainly due to the addition of overtime ship services and the introduction of special pricing strategies by companies such as Mediterranean Shipping and Dafei Shipping on this line. At the same time, the increase in the capacity of the Panama Canal and the acceleration of ship turnover have also exacerbated the decline in freight rates.
In the face of this situation, European shipping companies are actively preparing for the price increase plan on August 15, while Asian shipping companies are more resolute, saying that even if the price increase fails on August 15, the freight rate will be increased on September 1 to cope with the current situation of rapid decline in freight rates.
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