After two months of epidemic prevention and control, Shanghai reopened. Based on the latest major shipping indexes, the SCFI and NCFI indexes have stopped falling and have risen slightly for almost four consecutive weeks. The freight rates of different routes have diverged. European and American routes have continued to decline; routes to South America, Australia, New Zealand, Southeast Asia, and the Middle East have increased significantly. .
WCI’s major route indexes remain stable, the US route has a downward trend, and the European route has been relatively stable in recent weeks.
According to the latest data from Drewry, on major routes such as trans-Pacific, trans-Atlantic, Asia-North Europe and Asia-Mediterranean, there will be approximately 760 scheduled sailings from weeks 24 to 28 (June 13 to July 17). 75 voyages were cancelled, and the world’s three major shipping alliances successively canceled a total of 54 voyages.
Among them, the 2M Alliance has canceled the most voyages, with 27 voyages; THE Alliance, with 20 voyages; the Ocean Alliance, which has the least cancellations, has canceled 7 voyages; 75% of the empty flights occurred on the eastbound trans-Pacific route, mainly to the West United States.
The Drewry Composite Average Index WCI fell 0.6% to $7,578.65/FEU this period, but is still 13% higher than the same period in 2021.
•Shanghai-Los Angeles and Shanghai-New York freight rates both fell 1% to US$8,613/FEU and US$10,722 respectively.
•The Shanghai-Genoa spot freight rate fell by 2%, or US$191, to US$11,485/FEU.
•The freight rate from Shanghai to Rotterdam increased by 1% to US$9,799/FEU.
Drewry expects the index to slowly decline over the coming weeks.
Drewry said that after two months of lockdown, operations at the Shanghai Port are returning to normal and factories are no longer operating under closed-loop conditions and restrictions. The focus of the issue has shifted to concerns about the peak season and the number of empty containers returning to the port of Shanghai.
Shippers operating in the trans-Pacific trade should prepare for a new round of disruptions as labor negotiations between the U.S. and the West are likely to coincide with a surge in cargo from China.
While it is unclear whether a deal will be reached before the contract expires on July 1, there is a risk that negotiations could take months to reach a conclusion.
Last week, China’s export container transportation market continued to be stable. Recently, the Shanghai Export Container Comprehensive Freight Index released by the Shanghai Shipping Exchange was 4233.31 points, an increase of 0.6% from the previous issue.
Although the SCFI freight index has risen for four consecutive weeks, major European and American routes have continued to fall.
European routes: Affected by the epidemic and the Russia-Ukraine conflict, the future economic recovery in Europe will face the double test of high inflation and energy crisis. At present, the transportation market continues to remain stable, with market freight rates falling slightly.
In the latest period, the freight rate (sea freight and shipping surcharges) exported from Shanghai Port to European basic ports was US$5,843/TEU, down 0.2% from the previous period.
Mediterranean route: booking prices in the spot market fell slightly. In the latest period, the market freight rate (shipping and shipping surcharges) exported from Shanghai Port to the Mediterranean Basic Port was US$6,557/TEU, down 0.2% from the previous period.
North American route: In the latest period, the market freight rates (shipping and shipping surcharges) exported from Shanghai Port to the basic ports in the West and East of the United States were US$7,630/FEU and US$10,098/FEU respectively, down 1.0% and 1.3% respectively from the previous period.
Persian Gulf route: The market freight rate (shipping and shipping surcharges) exported from Shanghai Port to the basic port of the Persian Gulf is US$3,267/TEU, an increase of 7.5% from the previous issue.
Australia and New Zealand routes: The market freight rate (sea freight and sea freight surcharges) exported from Shanghai Port to the basic ports of Australia and New Zealand is US$3,405/TEU, an increase of 1.7% from the previous issue.
South American routes: The market freight rate (sea freight and sea freight surcharges) exported from Shanghai Port to South American basic ports is US$7,216/TEU, an increase of 7.7% from the previous issue.
The Ningbo Export Container Freight Index (NCFI) released by the Ningbo Shipping Exchange closed at 3540.7 points (June 4 to June 10), up 0.1% from last week. The freight index of 11 of the 21 routes increased, and the freight index of 10 routes fell. The key route index conditions are as follows:
European routes: The fundamentals of supply and demand for European routes are generally stable, and booking prices in the spot market this week are less volatile.
•The European route freight index is 4302.3 points, up 0.7% from the previous issue; •The Didong route freight index is 4089.0 points, down 0.7% from the previous issue;
•The freight index for the West-West route was 4885.2 points, down 0.3% from the previous period.
North American route: There is a certain surplus of space on the route. Most liner companies have reduced prices to attract cargo, and booking prices in the spot market have fallen slightly.
•The U.S. East Route freight index was 3435.9 points, down 1.9% from the previous period;
•The freight index for the US-West Route was 4667.1 points, down 2.8% from the previous period.
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