Lack of cabins and cabinets, freight rates continue to soar! The U.S. line, South Africa and West Africa surged nearly a thousand dollars, up nearly 60 percent in a month.

The latest Shanghai Freight Index (SCFI), released on May 31, rose 12.63 per cent to 3044.77 points, rising for eight consecutive weeks and breaking through the 3000-point mark in one fell swoop, with US and African routes rising the most.It's up nearly 57 percent in a month.
Specifically, the U. S.-West route freight rates rose nearly a thousand dollars, the weekly increase of up to 18.87 percent, the U. S.-East route freight rates rose 11.17 percent. Freight rates on the Mediterranean and European routes also rose by 11.11 per cent and 9.71 per cent, respectively. it is particularly noteworthy that,US-West and US-East freight rates broke through the US $6000 and US $7000 mark respectively.
On other routes,Freight rates from Shanghai to West Africa, South Africa and South America also rose sharply by $799, $936 and $343, respectively.
Freight forwarding industry insiders said that in addition to the peak season effect in advance, some customers in order to reduce the impact of rising freight rates, choose to ship ahead of schedule, which also increased the volume of shipping. In addition, the United States has imposed tariffs on imported electric vehicles, batteries, computer chips, medical consumables and other products, some of which will take effect on August 1, which has also prompted relevant operators to speed up shipments ahead of schedule.
At the same time, the industry found that in order to avoid tariffs, many enterprises are gradually dispersing their factories to West Africa, South America and other places, which further promotes the increase of transportation demand from the Far East to West Africa and South America, and the price also rises.

Shipping companies have announced price increases from June 1, in whichThe US line will increase its price by US $1000 per 40-foot cabinet and will charge an additional peak season surcharge of about US $600;The price of the European line is 1200-1500 US dollars per 40-foot cabinet.These changes have been partially reflected in this week's SCFI offer. Due to the frequent shortage of boxes in the market, the industry expects the third quarter freight rates to have the opportunity to maintain high-end.

The freight forwarding company pointed out that,On June 1, the U.S. and West were about $6400 per large box, the U.S. and East were about $7500, and the European line was about $6300, all of which were already very high freight levels.In Shanghai and Shenzhen, where the cabin shortage is the most serious, the shipping company dispatched overtime ships in June. COSCO and OOCL also opened SEA32 regular routes for e-commerce goods, charging only a single freight rate (FAK), which is estimated to be a new route dispatched by new shipbuilding.
The shipping company claims that the current shortage of ships is due to a natural reduction in shifts caused by the ship's detour. However, the freight forwarders pointed out that the shipping companies also deliberately reduced their shifts, otherwise they could not send overtime ships to meet the demand. As for the shipping company's plan to raise freight rates significantly on June 1 and 15, some super-large cargo companies predict that,U.S. officials and shippers' organizations are likely to take action to curb soaring freight rates to avoid fueling inflation.Therefore, it is estimated that the freight rate in July should be lowered.

SCFI specific offer aspects:

  • Shanghai to EuropeThe freight rate was $3740/TEU, up $331, or 9.71 per cent for the week;
  • Shanghai to the MediterraneanThe freight rate was $4720/TEU, up $472, or 11.11 per cent for the week;
  • Shanghai to West AmericaThe freight rate was 6168 US dollars/FEU, up 979 US dollars, up 18.87 per cent for the week;
  • Shanghai to MeidongThe freight rate was 7206 US dollars/FEU, up 724 US dollars, up 11.17 per cent for the week.
In addition to other routes:
  • Shanghai to South America(Santos) at $7408 per 20-foot cabinet, up $343;

  • Shanghai to West Africa(Lagos) $6151 per 20-foot container, up $799;

  • Shanghai to South Africa(Durban) is up $936 at $4824 per 20-foot cabinet.

an analysis of the current shipping situation by industry insiders pointed out,A chain reaction due to capacity shortages and reduced voyages.First of all, some ports are forced to "jump", causing some supply chains to break, affecting the capacity scheduling of the East, the West and the United States; secondly, there are even "blank flights" in some areas, that is, the originally planned flights are canceled. When the flight resumes again, it will face the problem of container scheduling. In addition, some containers cannot return in time at the unloading port, resulting in a shortage of boxes.
In this case, shipping companies operating ocean routes will prioritize the allocation of containers to countries in Europe, the United States, Central and South America, and the Middle East in order to secure capacity in major markets,This has further exacerbated the shortage of boxes on the near-ocean route.