Currently, the global logistics supply chain is still severely clogged, and global shipping tensions continue. The export market is generally stable. Based on this situation, market freight rates still remain high.
Except for the US route, the cargo volume of other routes decreased
Due to disruptions in the container logistics supply chain, shipping volumes on other routes around the world, except for the US route, have declined.
The latest data from Container Trades Statistics (CTS) shows that global container shipping volume fell by 3% in September to 14.8 million TEUs, which was the lowest monthly freight volume since February this year. , an increase of less than 1% year-on-year in 2020.
In the United States, consumer demand continues to drive growth in imported containerized cargo, CTS said. However, a decline in exports from Asia led to a decline in global cargo volumes.
Among the global routes, the only one that has seen growth is the Asia-North America route. The 2.2 million TEU volume of this route in September was the highest monthly volume so far. In September, the Asia-Europe route’s shipping volume dropped by 9%, to only 1.4 million TEUs, a decrease of 5.3% from September 2020.
Route freight rates remain high
Recently, the global COVID-19 epidemic is still in a relatively severe situation. There are signs of rebound in Europe, and future economic recovery still faces greater challenges. At present, China’s export container transportation market is basically stable, and freight rates on ocean routes are hovering at high levels.
On November 5, the Shanghai Export Container Comprehensive Freight Index released by the Shanghai Shipping Exchange was 4535.92 points.
European routes and Mediterranean routes. The COVID-19 epidemic in Europe has recently rebounded, dragging down the pace of economic recovery and showing signs of slowing down. The market transportation demand situation is good, the relationship between supply and demand is slightly tense, and the market freight rate is hovering at a high level.
North American routes: The recent transportation demand in the United States continues to remain high during the traditional transportation peak season, the fundamentals of supply and demand are stable, and the average space utilization rate of ships in Shanghai Port is close to the full load level. The market freight rates of the US West and US East routes in Shanghai Port continue to hover at a relatively high level, with the US West route rising slightly and the US East routes falling slightly.
Persian Gulf route: The epidemic situation in destinations is generally stable, the transportation market remains stable, and the fundamentals of supply and demand are good. This week, the average space utilization rate of ships in Shanghai Port remained at a high level, and the booking market in the spot market fell slightly.
Australia-New Zealand routes: The demand for daily necessities drives transportation demand to remain high, and the fundamentals of supply and demand are solid. The average space utilization rate of ships in Shanghai Port remains at a high level, and the booking price in the spot market hovers at a high level.
South American routes: The epidemic situation in South America continues to be severe, and the epidemic situation in major destination countries has not been effectively improved. The demand for daily necessities and medical supplies has driven transportation demand to hover at a high level, and the relationship between supply and demand is good. The market situation this week is generally stable.
Japan route: transportation demand remains stable, and market freight rates are generally improving.
The sea freight is one price per day, I dare not take orders
Regarding the recent experience of the shipping market, a freight forwarder said, “The current shipping market is very chaotic, especially chaotic. The rapidly changing information has caused many freight forwarding companies and foreign trade production companies to be afraid to accept orders, and business cannot be done. .”
Take the Matson Clipper as an example. The very representative West Coast line departs from Ningbo Port and Shanghai Port. The price of the Matson Clipper is subject to factors such as power restrictions. Under the impact of the epidemic, in October, in just half a month, the price dropped from US$44,000/container to US$17,000.
However, the rebound only took 2 weeks. By the end of October, the market quotation reached a new high of US$50,000/container. Ordinary ships on the West-US route have recently gone from a low of US$8,000-9,000/container to US$12,000-13,000/container at the end of October.
The sharp fluctuations in shipping prices on the West-U.S. line have also directly affected the export plans of foreign trade companies. A freight forwarder said, “Recently, we have negotiated a large order with a foreign trade company with a total container volume of over 1,000. However, the price of the US-Western route suddenly dropped in the early stage, causing the cooperation between the two parties to finally come to a halt.”
In the past year or so, we have experienced domestic and international shipping crises such as empty container shortages, Los Angeles port congestion, Suez Canal ship jams, Shenzhen Yantian Port and Ningbo Zhoushan Port epidemics. This year, Around August, sea freight rates reached their peak, with common lines increasing by 3-6 times.
“If you don’t open for ten years, you will survive for ten years if you open.” Before the COVID-19 epidemic, the global shipping market had been in a downturn for nearly 10 years, and in recent years, with the merger of the industry, Reorganization has made the shipping market highly concentrated, and each other has different prices.There is a tacit understanding that shipping companies will have no initiative to lower prices until the supply and demand structure changes. </p
