Order 800 cabinet at one go! There is no shipping space for fare increase! Freight rates soar above $10000


After the May Day holiday, there was a significant customer demand storm in the container shipping market. This sudden increase in demand surprised people in the industry, which is very different from the market situation before the May Day holiday.

 

Order 800 cabinet at one go!

Some people in the industry said that last week, customers were eager to get 700-800 container spaces to South America for loading LCD TVs and other electronic products. The strong demand for goods has driven the price of 40-foot containers to soar, directly exceeding $10000.

 

According to industry insiders, the current shipping space to South America is full by the end of June. Customers need 700 to 800 containers. Even if they are willing to pay a higher price, there is no shipping space. It is expected that the price will rise again.

 

Analysts believe that May and June are the peak seasons for South America to export fruits and other agricultural products to Asia, and the flow of goods from China to South America is generally flat under normal circumstances.

 

However, customers were eager to ship in May, which should be a signal that the inventory level of consumer electronic products is low, and it has something to do with the stability of Argentina's political situation and economy.Indicates a shift in market demand.

 

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From the 10-day data, the Container Freight Index (SCFI) released by the Shanghai Air Exchange shows that,Container freight rates on routes from the Far East to South America have risen sharply.

 

Among them, the freight rate of 20-foot containers is 5461 US dollars, and the freight rate of 40-foot containers is 10922 US dollars. The weekly increase is as high as 18.13 percent, and the increase is strong for several weeks. It also reflects the recovery of market demand and the tension of supply to a certain extent.

 

Europe and the United States routes up another $1000!
 
 

 

At the same time, the reduction and parallel shift measures implemented by shipping companies during the May Day holiday have had a significant impact on market freight rates, resulting in a sharp rise in freight rates.

 

Originally, the freight rate per large box in the US and West was about US $4200, US and East was about US $5300, while the European route was about US $3500.

 

According to the latest news, the freight rate of European and American routes will be increased by 1000 US dollars on the 15th. It is worth noting that a large shipping company has informed the European routeAn additional peak season surcharge of $600 will be levied between the 22nd and 31st of this month.

 

According to industry insiders, the sudden surge in demand in Europe, North America and South America is completely different from before the May Day holiday, and the speed and pace of change are amazing.

 

Due to the strong market demand, customers have been informed that the contracts signed this year will need to be renegotiated, otherwise they will not be able to obtain space, and the supply and demand roles of buyers and sellers in the container shipping market will change this year.

 

 

At the same time, the April Manufacturing Purchasing Managers Index (PMI) released by the National Bureau of Statistics on April 30 showed that although it fell by 0.4 to 50.4 from March, it was still in the expansion range for two consecutive months and was better than market expectations. 50.3. This indicates that exports have begun to warm up, further confirming the trend of demand growth in the container shipping market.

 

At present, many freight forwarders are facing the pressure of soaring freight rates and tight shipping space. A freight forwarder said: "The freight rate changes every day. I really don't know how to quote!"

 

For the cargo owner, the impact is also intuitive. Recently completed production of goods had to delay delivery, the backlog is serious.

 

Shoot yourself in the foot with a rock?

 

Senior officials in the shipping industry expressed concern about the continued rise in freight rates, believing that this may further depress the purchasing power of consumers and bring about a series of market sequelae; at the same time, the continued high freight rates not only make it difficult for many freight forwarding companies and foreign trade enterprises to bear, resulting in the delayed delivery of goods that have been completed, and the backlog of goods in ports, thus affecting the delivery of payment for goods and the scale of subsequent orders.

 

Industry experts have analyzed that increased demand for home-based work and learning during the epidemic drove demand for related commodities, but also led to a spike in freight and freight rates, which in turn led to inventory backlogs and inflation problems.

 

Today, the combination of the Red Sea crisis and the shipping company's control cabin adjustment strategy has once again led to a surge in freight rates, which has raised concernsThe purchasing power of end consumers in Europe and the United States will be affected, which may lead to a reduction in orders.

 

Repeat the same after the outbreak of demand, freight rates fell to the bottom, a slump. Although the current market outlook for the third quarter is not pessimistic, the industry is generally worried that the peak season may not be prosperous.

 

 

Under the current pressure of excess capacity, the shipping company hopes to absorb the excess capacity by bypassing the Cape of Good Hope by the Red Sea crisis vessels, and combined with the control strategy, to make a lot of money when the freight rate rises sharply, in order to cope with the possible rapid decline in freight rates in the future.

 

However, industry insiders believe that if freight rates continue to rise and affect the purchasing power of consumers, the market will naturally adjust. Of course, if the Red Sea crisis can be resolved quickly, the current high freight rates are also expected to fall quickly.

 

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