Big drop! ! Dropped 14%
Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~
Recently, the elimination of the strike risk at the East US terminal and the approaching Lunar New Year have led to a significant downward trend in freight rates on major European and American routes.
This change was reflected in the latest Shanghai Export Container Freight Index (SCFI): the index dropped sharply by 214.49 points to 2505.17 points on the 10th, a drop of as much as 8.56%, ending the previous six consecutive weeks of rising trends.
This decline involves all routes, among which European routes have a particularly significant decline, reaching 14.42% due to relatively weak market demand.
Specifically, freight rates on the four major routes have all declined. Among them, the declines in European routes and Mediterranean routes were particularly significant, continuing to fall by 14.42% and 7.21% respectively, showing that market demand was relatively weak.
At the same time, freight rates on the US line also turned downward, with the US West and US East falling by 6.3% and 2.94% respectively. The larger decline in the Western United States is related to the loss of support for freight rates after the strike crisis in the Eastern United States was resolved.
Industry insiders in the freight forwarding industry pointed out that since the 2nd of this month, freight rates in the West Coast have begun to decline. As of the 10th, the freight rate in the US West has dropped from US,500 to US,200 per large box, while that in the US East has dropped from US,500 to US,200.
Industry insiders predict that due to more shipping company reductions, subsequent freight rates may stabilize at this level.
For the European line, the freight rate dropped particularly sharply this week, from US,600 to around US,200. Industry insiders said that freight rates on the route from the Far East to Europe are expected to continue to fall, and may fall below US,000 after the Spring Festival.
Logistics industry analysts pointed out that given that the Lunar New Year falls early this year, bookings for next week’s space are already fully booked. As the Spring Festival approaches, freight rates begin to adjust downward. This phenomenon is not unique to this year, but is a general downward trend in freight rates week by week in the one to two weeks before the Spring Festival every year.
Towards the end of the year, factories are entering holidays one after another, and shipments are decreasing. In order to cope with the demand during the Spring Festival, shipping companies have launched discount prices for stocking up to attract supply.
Currently, the freight rate on the European route has retreated to the US,000 level, while the US West Route has maintained its price at US,000, and the US East Route has retreated to the US,000 mark.
In addition, ships working overtime also joined the rush for goods. It is expected that as the Lunar New Year approaches, shipping companies will further reduce freight rates in order to compete for supply of goods in order to gradually digest the accumulated inventory between the Spring Festival and the resumption of work after the holiday.
