Recently, the Southeast Asian market, which has been dormant for a long time, has begun to become restless. According to some reviews by freight forwarding colleagues in the market, as well as new price increase notices issued by many shipping companies, shipping rates in Southeast Asia are about to take off!
Many ports in Southeast Asia are congested and space has been reduced
Last week, several ports in Southeast Asia experienced port congestion:
Congestion rate in Port Klang, Malaysia 14.5% higher than normal;
The congestion rate at Tanjung Pelepas Port (Tanjung Pelepas) is 29.9% higher than normal;
Jakarta’s container hub Tanjung Priok is 6.7% higher than normal;
Manila’s congestion rate also increased by 6.5%.
In addition, shipping schedules are confusing and shipping companies have no reason to postpone.
According to people familiar with the matter, because the small ships were bidding for routes, the Philippines and Japan routes won the bids. Therefore, if Singapore and Malaysia routes want to get ships, they can only buy them from the Philippines and Japan at high prices. The Japanese route increased the number of ships. This disturbance directly caused the price of the Southeast Asian route to soar, repeating the situation of the European and American routes last year.
Due to the shortage of ships, freight forwarders have announced emergency price increases, with an average increase of 100 yuan/cubic. Due to rising raw material prices, sellers’ costs have nearly doubled. This new round of logistics price increases has an obvious impact on Southeast Asian sellers.
In this price increase, Singapore shipping is the hardest hit line, followed by Malaysia and Thailand shipping, which are also affected by the price increase. Reasons for the recent price increase of the Thailand line that has dominated the industry:
Thailand line in Southeast Asia:
TRX and CV6 were withdrawn, and the market space was low 900T;
CUL withdrew a ship, and the space was 500T less;
PIL and RCL ships often do not come, The number of cabins is 300T less;
The total number of the above is 1,700T; the original number of cabins in the market is 5,000, which has been reduced to 3,300.
The pier was blocked for 4 days. The original 14-day round trip became 18 days, and the shipping capacity was reduced by 22% to 2574 Teus per week.
The normal market volume is 3,500 Teus. Now in the peak season, 4K is 4K per week, with a gap of 1,400 Teus, accounting for 35%, because the cargo backlog ratio continues to increase.
Suggestions for shipping in the current market: No matter what the earliest price in the market is, just leave if you can this week, because the highest price this week is the lowest price next week.
Shipping companies issue price increase notices
At present, it is difficult to find a container and it has begun to appear in some Southeast Asian ports. To grab a cabin, you also have to grab a box. The latest price increase notice from the shipping company shows that the surge in freight rates in Southeast Asia is not groundless!
The following is the price increase notice just issued by CMA CGM’s CNC, which focuses on the Asian market. The increase is not small!
From Shekou Port to Bangkok and Laem Chabang Port in Thailand, the price increases by USD350/700/700
Shekou to Incheon, Busan and other ports , directly increase the price by USD500/1000/1000
In addition, we have also reported before that after severe congestion at California ports affected the shipping company’s sailing plan, Wanhai Shipping has begun rerouting ships on its Asia-U.S. West Coast route toward its core intra-Asia routes.
When announcing the financial results for the first nine months, Wanhai general manager Tommy Hsieh said that since the end of the year is the peak season for intra-Asia cargo transportation, profits may be improved by shifting capacity from the U.S. West Coast to intra-Asia routes. maximize.
Tommy Hsieh said that ships have to wait 28 days at the ports of Los Angeles and Long Beach to berth, a situation that is unlikely to improve even by early next year.
“Congestion is so severe that we are no longer able to provide reliable sailing schedules, so we are gradually withdrawing some ships and putting them on our intra-Asia routes to capture sailings to India and Vietnam Peak period for shipments,” Tommy Hsieh said.
Some freight forwarders call on cargo owners to ship goods as soon as possible: Southeast Asia has recently experienced explosive warehouse surges and price increases. Today’s high price is tomorrow’s low price! </p
