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Many routes sea freight down? Shipping company can agree?
Apr 24,2022
Container spot freight rates on most Chinese export routes fell this week, is this a long-term trend?
In this case, the shipping company stopped more voyages.
So here's the question?
How will this be reflected in future freight rates with fewer voyages?
Ocean freight rates have fallen by more than 8 percent since the beginning of the year due to rising costs and inflation as a result of the war, as well as increased shipping capacity as a result of shipping companies' boycotts of Russian goods.
The Ningbo container freight index fell on the 16 routes covered by its composite index, with demand in the Nordic and Mediterranean markets "sluggish", leading to "pressure on freight rates".
The Shanghai Export Container Freight Index shows that the Shanghai Export Container Composite Freight Index has fallen for four consecutive weeks. Compared with the beginning of February this year, the decline reached 7%.
In the past month, the freight rate of Shanghai Port's exports to the European basic port market fell by more than 8%; the freight rate of Shanghai Port's exports to the Mediterranean basic port market fell by nearly 5%.
The industry insider said: "With fuel costs soaring and supply chain disruptions continuing, it seems strange that freight rates are falling, even if they are indeed still very high."
Shipping companies have been watching as the outbreak has swept through and many areas are in lockdown. The controls affected some production schedules and order cancellations, and although shipping companies said the main export ports were working "normally", warehouse closures, limited trucking services and delays in yard and terminal handling all affected the supply of goods and slowed down the working hours of ships.
According to reports, long-term bookings in northern Europe have also dropped sharply. nevertheless, shipping companies are preparing to cancel more flights to cope with the downturn in demand. 2M operators Maersk and MSC recently announced the cancellation of three flights in April, which MSC attributed to "the continued challenging market situation".
Port of Los Angeles staff acknowledged at a news conference that another surge in shipments could come as the outbreak improves. About 1/3 of Los Angeles' imports come from areas affected by the outbreak. After the outbreak improves "depending on the extent of the current disruption, it may be enough to drive up trans-Pacific freight rates again".
Despite the softening in freight rates, shippers are bracing for an imminent sharp increase in fuel surcharges by shipping companies as well as soaring shipping costs.
It is reported that from April 1, most shipping companies in northern Europe will add fuel surcharges to their route transportation costs.
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