Concerned about plummeting freight rates, shipping companies announced a major suspension of sailings before the Golden Week
Sunny Worldwide Logistics is a logistics company with more than 20 years of transportation experience, specializing in Europe, the United States, Canada, Australia, Southeast Asia and other markets. It is more of a cargo owner than a cargo owner~
Ocean shipping companies canceled a large number of export voyages from Asia to Europe and Asia to the United States ahead of the National Day holiday in early October due to concerns about another plunge in spot container freight rates.
One carrier insider predicts that there will be "more" sailing suspensions during the key weeks of weak demand in the off-season to avoid a repeat of the rate war; and believes that as long as the Red Sea diversion continues and the market maintains its current trend, This strategy is believed to be able to ride out market fluctuations smoothly.
The latest cancellation assessment data released by Drewry shows that in the five weeks from Week 36 (September 2 to September 8) to Week 40 (September 30 to October 6), trans-Pacific, There are a total of 696 scheduled sailings on the main trade routes across the Atlantic and Asia to Northern Europe and the Mediterranean, and 68 sailings have been canceled, with a cancellation rate of 10%. Specifically, the eastbound trans-Pacific route has the most canceled sailings, accounting for 51%, the Asia-North Europe and Mediterranean routes account for 28%, and the westbound trans-Atlantic route accounts for 21%.
At the alliance level, THE Alliance canceled 17 voyages, Ocean Alliance and 2M Alliance canceled 12 and 10 voyages respectively, and non-alliance shipping companies canceled 29 voyages. Maersk stated in the announcement that in view of the expected reduction in demand, the company is adjusting the service network to maintain balance; and MSC, as its 2M alliance partner, also announced that it will adjust capacity in the 39th and 40th weeks to cope with the expected slowdown in demand..
Drewry said ocean carriers may need to implement additional suspensions as spot freight rates continue to fall and demand continues to be weak ahead of the Golden Week holiday, which is typically a period of surge in orders before factories take off for a week. Shippers and BCOs should develop contingency plans to mitigate the impact of any last-minute sailing cancellations on their shipments.
Although spot freight rates on the Asia-Europe and trans-Pacific eastbound routes have shown a steady downward trend recently, there is no evidence that this is a collapse in freight rates caused by significant price cuts by major carriers. In fact, according to data from Drewry's World Container Composite Index (WCI), the freight index from Asia to Northern Europe is still 350% higher than a year ago. Although it fell slightly this week (3%), it still remains unchanged. At a high of ,204 per 40 feet.
Nevertheless, overseas media obtained a short-term freight quotation from Ningbo to Felixstowe this week, which is US,000 per 40 feet and is valid until September; while another UK-based NVOCC stated that it A quote for freight from China to Southampton has been received at ,500 per 40 feet, with further cuts likely to be made as the league's reorganization proceeds.
Facing the market environment of weak demand and declining freight rates, how can freight forwarding companies seize opportunities, expand business and increase profit sources.
