As the Spring Festival is approaching, due to the epidemic during this period, many regions in the country have issued a “no return to hometown unless necessary” initiative. Fortunately, the epidemic situation has improved in many places, and everyone wants to go home and reunite with their families.
Tow truck drivers are no exception. They travel to ports all year round and rarely reunite with their families, so most drivers choose to go home early for the New Year.
Because logistics trucks and trailers have finished work ahead of schedule, many freight forwarders and shipping companies have also cut off orders in advance and entered the final stage.
Freight rates have fallen for two consecutive weeks, with the U.S. East Line experiencing the largest decline
As the Spring Festival holiday approaches, Asia’s export volume decreases, and the Shanghai Export Container Freight Index (SCFI) has fallen for two consecutive weeks.
According to the latest data released by the Shanghai Aviation Exchange on January 21, the SCFI index ended last week with nine consecutive weeks of gains and a new high record for six consecutive weeks. It fell for the second consecutive week this week, with the index falling 0.81% to 5053.12 points. For the first time, freight rates on major routes such as the US-Western Line, European Line, and Southeast Asian Line were jointly revised downwards.
Among them, the Far East to US East Line suffered the largest decline, with freight rates falling 3.34% to US$11,337/FEU. The US West Line fell slightly by 0.23% to US$7,976/FEU.
In contrast, the performance of the European line was relatively stable. The freight rate of the Far East to Mediterranean line increased by 0.03% to US$7,522/TEU, while the freight rate of the Far East to Europe line fell by 0.18% to US$7,783/TEU.
The near-ocean line remained mixed. The freight rate of the Far East to Japan Kansai line increased by US$23 compared with the previous week. The freight rate of the Far East to Japan Kanto line fell by US$7 compared with the previous week. The freight rate of the Far East to Southeast Asia line Singapore dropped by US$13 compared with the previous week. The Far East The line to South Korea dropped by $7 from the previous week.
Industry analysts said that freight rates cannot remain high forever. As China’s Spring Festival holiday approaches and demand decreases, the fall in freight rates reflects market demand. Such a retracement trend is normal.
Whether the market reverses downwards and the extent of future freight price declines are important indicators to observe. As long as it is not a collapse trend, there is no need to worry too much.
People in the freight forwarding industry said that the current market transaction prices for both the trans-Pacific route and the European route remain at a high level. China will start production one after another in the next two weeks of the year, and freight rates are expected to continue to consolidate.
However, in the next February and March, negotiations on the West American dockworkers contract will begin. According to past practice, if the negotiations do not go smoothly, it may lead to work slowdowns or even strikes. Cargo owners will pull goods in advance, which will push up the demand for transportation capacity in the first quarter and support high freight rates. Therefore, High freight rates are expected to remain high until at least the second or third quarter.
612 ships around the world are congested, and the problem remains serious
According to the latest data in Seaexplorer, there are currently 612 container ships anchored or cruising near major ports around the world.
Congestion at the ports of Los Angeles and Long Beach continues. The latest data shows that there are still 103 ships waiting to berth. The problem of long waiting times for cargo ships at ports remains severe, and cargoes are still piling up before the Spring Festival.
The number of port workers has decreased due to the Omicron variant of the coronavirus. Congestion is serious, and the Port of Los Angeles and the Port of Long Beach continue to postpone the implementation of container detention fees. The congestion may not be alleviated after the year, so everyone must be mentally prepared.
Summary of ships suspending sailing and jumping to ports during the Spring Festival
The following is a summary of the stop sailings and port jumps from mainland China to North America, Europe and the Mediterranean in the 5th to 10th weeks (from January 23, 2022 to March 5, 2022) of easy shipping schedule statistics:
Summary of suspended sailings and port hopping
◾Eastern China
◦Shanghai
◦Ningbo
◾Southern China
◦Pearl River Delta
Shenzhen-Yantian
Shenzhen-Shekou
Shenzhen-Dachan Bay
Guangzhou-Nansha
◦Hong Kong
◦Xiamen
◦Fuqing
North China
◦Qingdao
◦Tianjin New Port
◦Dalian
◦Lianyungang
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