After a brief decline in October, freight rates rebounded. In addition, as the Spring Festival is approaching, market demand is rising, and the Southeast Asian market is experiencing a sudden change…
It is understood that from the end of October to the first week of December, freight rates from Ningbo to Thailand and Vietnam have increased by 137%.
Shipping spaces are in short supply, and shipping rates continue to rise.
In the past, the freight rate per TEU in Asia’s short ocean line was at most several hundred dollars. However, due to the imbalance of global supply and demand and the shortage of containers and port congestion in Europe and the United States, the phenomenon has obviously spread to Asia.
There is a rare shortage of space on the near-ocean line. Some South Asian routes will not have space until after the Spring Festival. The freight rate on some Southeast Asian routes has reached more than 3,400 US dollars.
According to Yang Ming Shipping’s latest Southeast Asia line quotation, since December 16, the overtime and additional call (AD HOC) freight rate has increased by US$600 per TEU and US$1,200 per FEU, with the highest increase of more than 100%, setting a new record for the Southeast Asia line. Maximum increase.
Wanhai Shipping also announced that starting from December 20, it will increase the price by US$400 per TEU and US$800 per FEU for the three ports in Thailand.
Previously, Wanhai Shipping had increased the freight rates for routes to Singapore, Malaysia, Thailand, Vietnam and Indonesia at the beginning of the month. The increase was between US$600 and US$800 per FEU. The increase for the Philippines route also reached US$300.
Wanhai Shipping explained that there has been an urgent shortage of space on the Asian line recently, and the cargo volume is too large in an instant, and the price has also been adjusted in line with market demand.
A closer look at the reasons for the price increase in Southeast Asia shows that the end of the year is already the peak season for shipments within Asia. In addition, the general unblocking of Southeast Asia in October released a large amount of transportation demand, and the overall demand is already at a high level.
However, in July and August, due to the severe epidemic in Southeast Asia and the booming European and American shipping markets, shipping companies transferred Asian shipping capacity to ocean shipping lines. Since then, ports in the West and West, represented by Los Angeles and Long Beach, have experienced long-term port congestion and disorderly shipping schedules. , resulting in the inability to recover transportation capacity in time, and a serious shortage of cabins on the Southeast Asia line.
Previously, it was reported that nearly ten ships of Wanhai Shipping were stuck in Los Angeles and Long Beach.
Freight rates on most routes rose slightly again
According to the latest Ningbo Container Freight Index (NCFI), 15 of the 21 routes showed slight growth amid continued tight capacity.
From Asia to Northern Europe, Drewry’s World Container Index (WCI) was flat at $13,564 per 40 feet, the Baltic Freight Index (FBX) was up 1% at $14,345, while the Xeneta Latest Index (XSI-C) was up 3% at $14,345. $14,443 per 40 feet.
According to reports, some shipping lines are now offering Asia-North Europe rates to freight forwarders and NVOCCs that are only valid for two weeks, and are refusing to sign any short-term contracts before the Chinese Lunar New Year in February.
One UK freight forwarder said he “feared the worst”, with other carriers following Maersk’s lead, effectively excluding smaller shippers from enjoying any rate stability next year. “Our customers want to know what their shipping costs are going to be next year and with just a few weeks to go we really have no clue,” he said.
“Omicron” boosts freight rate expectations and may continue to affect the supply chain
A few days ago, the latest news from the WHO stated that 77 countries and regions have reported cases of infection with the Omicron strain, and the actual situation is likely that the strain has spread to most countries and regions.
Recently, a number of studies have released reports stating that “Omicron” has affected the recovery of the global supply chain and may have an impact on regional trade.
Affected by the epidemic, the off-season for the shipping industry in November is not weak, and the demand for containers is booming. With the emergence of cases related to the Omicron coronavirus variant in many countries, the rebound of the global epidemic has once again affected the shipping industry.
Several liner companies believe that strong market conditions will continue into 2022 and that this situation may be extended further.
Taking into account the possible increase in epidemic prevention policies brought about by the Omicron strain, the short-term freight rate increase can last until the Spring Festival.
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