Europe-European-European-European Line Freight Prices Fall Crazy! Shipping giant has made major adjustments to its shipping schedule!
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The Shanghai Export Container Freight Index (SCFI) fell again last week and fell below the 3,000-point mark. In particular, the freight rates on the European and continental routes fell significantly.
According to the latest data released by the Shanghai Aviation Exchange on August 30, the SCFI index fell 134.25 points last week to 2963.38 points, a weekly decrease of 4.33%. Among the four major European and American routes, except for the increase in freight rates on the American West Line, the other three major Freight rates on all routes continued to fall.
Last week, the freight rate per TEU from the Far East to Europe fell by US4 to US,876.Weekly decline of 11.91%;
The freight rate per TEU on the Far East to Mediterranean line fell by US4 to US,083, a weekly decrease of 9.89%;
Far East to America West LineThe freight rate per FEU rose by US5 to US,140, a weekly increase of 3.11%;
The freight rate per FEU from the Far East to the US Eastern Line fell by US7 to US,439, a weekly decrease of 1.27%.
Industry insiders analyze that when shipping capacity exceeds demand, container shipping companies offer preferential prices, matching prices, etc. to rush for goods, causing market conditions to be chaotic.
Although the container shipping company hopes to take advantage of the small peak season before the National Day holiday to increase the freight rates on the U.S. line on September 15, considering that some flights on the European and American lines have already experienced a loading rate of less than 80%, the possibility of a successful price increase is Not big.
As the National Day Golden Week approaches, demand is weak. Shipping companies are worried that container spot freight prices will plummet again. They have canceled a number of export voyages from Asia to Europe and the United States and made capacity adjustments.
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,eastbound transpacific routeThe largest number of canceled voyages accounted for 51%.Asia to Northern Europe and Mediterranean routesAccounting for 28%,westbound transatlantic routeAccounted for 21%.
At the alliance level,THE Alliance17 sailings were cancelled,Ocean Alliance and 2M Alliance12 and 10 voyages were canceled respectively.non-alliance shipping companies29 sailings were cancelled.
Maersk, a member of the 2M Alliance, said in its latest announcement that it expects demand to decrease and is seeking a network balance. The following is Maersk’s blank voyage plan for the Far East to Europe and Mediterranean routes:
The following is Maersk’s sailing schedule adjustment for the Asia-US West and US East routes. These sailings will be left blank:
Mediterranean Shipping Company (MSC), another member of 2M, also said that due to the expected slowdown in demand, it will adjust Asia to Europe route services in weeks 39 and 40. The following sailings will be cancelled:
MSC also plans to adjust its Asia to U.S. route services from weeks 38 to 41. The following sailings will be cancelled:
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.
Despite this, some foreign media found a short-term freight rate from Ningbo to Felixstowe of US,000 per 40 feet, valid until September.
Another British NVOCC also said he had received a quote of ,500 per 40 feet from China to Southampton. He added: "We believe prices may fall further as the league reorganizes."
Freight rates on the trans-Pacific route also remained stable. WCI data showed that spot freight rates to the U.S. West Coast fell only 2% this week to ,248 per 40 feet, while freight rates to the U.S. East Coast also fell 2% to ,248 per 40 feet. ft. ,591.
Although freight rates have declined, freight rates from Asia to the US West Coast and East Coast have increased by 180% and 150% respectively compared with the same period last year, remaining high.
It is worth noting that although shipping companies have adopted capacity management strategies on the trans-Pacific route to respond to market changes, the potential threat of strikes at U.S. East Coast terminals and the introduction of new import tariffs will still support freight rates. Although market demand is weak and new small shipping companies entering the market may bring certain competitive pressure, freight rates have generally remained stable.
Elsewhere, spot prices on the westbound transatlantic North Europe to U.S. East Coast route remained steady at around ,000 per 40 feet. Exporters are facing a tight deadline to ship goods as quickly as possible in anticipation of possible strike action at East Coast ports.
