Container freight index fell 45.54 points
A few days ago, according to the announcement of the Shanghai Shipping Exchange, the Shanghai Export Container Freight Index (SCFI) dropped below 1,000 points last week and fell again last week to 934.31 points, a decrease of 45.54 points or 4.64%. The four major ocean routes all declined. The freight rates from the Far East to the US West and the US East both fell by more than 13%, which was a heavy decline.
Although the pressure on the retail industry in Europe and the United States gradually decreased in the second quarter, the shortage of transportation labor is gradually resolved, and the economy has a chance to rebound in the third quarter.
However, Maersk cut prices and launched a price war, launching ultra-low freight rates from all Asia to ports on the West Coast of the United States (View article: Freight forwarding has become more difficult! Maersk took the lead in launching a freight war: the US West Coast price was reduced by US$350 per FEU!), for July Peak season freight rates bring uncertainties.
The latest freight index released:
The freight rate from the Far East to Europe is US$859 per TEU (20-foot container), a decrease of US$23 or 2.76% from last week;
The price per TEU (20-foot container) from the Far East to the Mediterranean is US$1,601, a decrease of US$25 or 1.53% from last week;
The price per FEU (40-foot container) from the Far East to the US West is US$1,207, a decrease of US$181 or 13.04% from last week;
The price per FEU (40-foot container) from the Far East to the US East was US$2,103, a decrease of US$332 or 13.6% from last week.
In terms of near-ocean lines, the Far East to Japan’s Kanto, Kansai, South Korea and Southeast Asia are all flat.
The person in charge of a large freight forwarding company pointed out that Maersk Line sent a letter to customers on the afternoon of the 13th, announcing that it would provide ultra-low freight rates from Asia to ports on the West Coast of the United States before the end of this month, with freight rates starting from US$1,200 per large box (40-foot container). Reduced to $850.
There are reports that Maersk has notified Shanghai, Qingdao, and Shenzhen Yantian that the freight rate at Mexiduo Port has dropped to US$850, and the freight war has really begun.
Maersk said in a notice to customers: We understand the importance of cost-saving strategies during the volatility of 2023, we strive to meet your needs, and we are pleased to provide cost-effective logistics solutions for your cargo from Asia to the Americas. .
Another large freight forwarding company pointed out that Maers once launched a limited edition freight rate of US$850 per large box in the West Coast. The company has grabbed a few shipping spaces. Whether this is a comprehensive price reduction remains to be seen.
The notice issued by Maersk is:
Exports from Yantian in Shanghai, Qingdao and Shenzhen to the ports of Los Angeles, Long Beach and Oakland in the Southwestern United States (PSW): freight per large box is US$850 (all-inclusive price);
The shipping fee for exporting from Shanghai, Qingdao, and Shenzhen Yantian in China to Vancouver, Prince Rupert, and Seattle in the Northwest United States (PSN) is US$850 per large box (all-inclusive price);
China’s Shanghai, Qingdao and Shenzhen Yantian export IPI inland ports of Chicago, Detroit and Fort Worth. The freight per large box starts at US$3,000 (all-inclusive price, about US$500 off).
The industry pointed out that Maersk launched a limited-time price reduction because the space loading rate is only more than 70%. It is estimated that Maersk will wait until July to determine the price increase based on the cargo loading situation.
In the past, because Maersk ranked first in the world in terms of shipping capacity, it led many freight rate wars. The most serious one once caused the freight rate on European routes to drop from about US$800 per box (20-foot container) to less than US$300.
I originally thought that the world’s largest shipping company, Mediterranean Shipping Company, would take the lead in price cuts this year. Unexpectedly, Maersk took the lead.
After Maersk harvests a large amount of cargo, it is difficult for other shipping companies not to follow suit.
Global container shipping trade volume shows negative growth
Last year, international container freight rates fell by nearly 80%.
Recently, prices have returned to pre-epidemic levels in stages, but overall there are still fluctuations.
Judging from the recent demand for container transportation, global container shipping trade volume still maintains negative growth. As of April 2023, the Clarkson Container Trade Monthly Index was 114.2 points, a year-on-year decrease of 3.7%.
However, China’s export demand performed well from March to April. According to statistics from the General Administration of Customs, my country’s export trade volume in US dollars increased by 14.8% and 8.5% respectively year-on-year in March and April this year. The level of empty containers at ports has dropped from its high point. The demand for containers is gradually recovering.
In terms of routes, the impact of inflation in Europe and the United States is still there, and inventory remains high. Transportation demand on main routes is still relatively sluggish, and cargo volume is relatively limited; while transportation demand on north-south routes such as the Persian Gulf and South America has picked up, and cargo volume has increased significantly.
According to analysis by Li Qianwen, deputy director of the Shipping Development Research Institute of the Shanghai International Shipping Research Center, as destocking around the world comes to an end, cargo volume is expected to gradually recover.
However, whether the traditional peak season of the international container shipping market in the third quarter of this year can come as expected depends on the realization of expectations such as the weakening impact of inflation in the United States and Europe, improvement in market consumption, smooth commodity destocking process, and easing of geopolitical tensions.
Against the background of overall weak global demand, China’s export container transportation demand still faces severe challenges.
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