Consolidation freight rates have increased from last year to this year, and the high freight rates that cause foreign trade freight forwarders a headache are getting worse day by day. Spot freight rates for container shipping have been fluctuating at extremely high levels this year and show no signs of coming back. On some trade routes, spot freight rates are still rising. Among them, trans-Pacific spot freight rates have been at record highs for eight consecutive months.
With the impact of the Suez Canal disruption on the supply of containers and ships, people have been talking about when the high freight rates will end, which has also drawn attention from the expected lower end of 2021. Half a year has turned to 2022.
At the same time, there is still a wave of increases waiting for us. It is reported that another shipping company has announced a new round of freight increases. Starting from May 22, 10,000 Shipping freight for cargo exported from China to Asia will be increased: USD 300/600/600 for 20’/40’/HQ, due to rising operating costs.
Not only that, Hapag-Lloyd has also increased its general freight rates from East Asia to the United States and Canada. According to the announcement, starting from June 1, 2021 (the date of receipt of goods at the origin), Hapag-Lloyd will increase the general freight rate (GRI) from East Asia to all destinations in the United States and Canada. Suitable for all dry, refrigerated, non-operational refrigerated, tank, flat rack and open top containers:
East Asia to North America (USA and Canada)
USD 960 per all 20′ container types
USD 1200 per all 40′ container types
East Asia is defined as Japan, South Korea, China/Taiwan/Hong Kong/Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, the Philippines, and the Pacific coastal provinces/regions of Russia.
On April 29, the Drewry World Container Index showed that the composite index rose by 1.4% this week to US$4,983.74/FEU. It has increased by 234% year-on-year.
Drewry’s assessment of the average composite index of global container freight rates year-to-date is US$5,089/FEU, which is US$3,269 higher than the average of US$1,820 five years ago. .
Among them, the freight rate of the Rotterdam-New York route soared by US$858/FEU to US$3,500; the freight rate of Shanghai-Genoa increased by US$349 to US$8,268. Shanghai-Los Angeles freight rates increased by $194 to $4,403. The index is expected to remain stable next week.
As the peak season will last longer, cargo volume and freight rates will increase, giving ships The company has brought in objective profits. Successful experience will make shipping companies tend to continue to control shipping capacity, thereby continuing to enjoy the dividends brought by high freight rates. Therefore, in 2021, the container shipping market is expected to maintain good momentum.
According to data from the Shanghai Shipping Exchange’s weekly report, on April 23, the average space utilization rate of ships in Shanghai on European routes was basically at full load level, and the average space utilization rate of ships in Shanghai on Mediterranean routes was at full load level.
The average space utilization rate of ships on the US West and US East routes in Shanghai Port is still close to the full load level.
The current freight rate situation has far exceeded people’s predictions. In mid-2020, many commentators believed that the hot demand will It peaked in August or September of last year and fell back in the fourth quarter, but that’s not what happened. Analysts also speculated last year that the surge in demand and freight rates were due to a one-time replenishment of inventories after the first lockdowns in Europe and the United States last spring, but even now, retailers are continuing to restock and inventories remain low.
Drewry’s research report stated: “Based on historical experience alone, we must believe that spot market freight rates will decline rapidly, but now is not a normal period. We believe that shipping The company can maintain good profitability for at least the next two years (2021 and 2022).”
For those shippers who had hoped that freight rates would fall back in 2021 It is expected that there will be a breath of relief until 2023, when the market situation will be more favorable for shippers and more severe for carriers. If there’s anything that shippers can take comfort in right now, it’s that predictions during the coronavirus pandemic were wrong. </p
