Freight prices loosened and began to decline! Except for European routes and Southeast Asia, all routes fell.
Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~
The latest Shanghai Containerized Export Freight Index (SCFI) was released on July 12. The index dropped significantly, falling 58.94 points to 3674.86 points, with a weekly decline of 1.57%, thus ending the previous 13 consecutive weeks of rising trends. Among the four major routes, freight rates showed a divergent trend. Except for the freight rates on the Far East to Europe route, which increased, the other routes all experienced declines to varying degrees. Especially for the US-Western route, due to the investment in temporary new capacity, the freight rate fell most significantly, with a drop of up to 5.5%, making it the most volatile freight rate drop among the four major routes.
In the container shipping market, the US-West Route originally planned to increase the price per large box by US,000 to US,100-8,500 on the 1st of this month. However, due to the continuous launch of overtime ships and new routes, the industry leader Mediterranean Shipping Company (MSC) chose to maintain the original price of US,500. Subsequently,Last Saturday (7th), most shipping companies lowered their freight rates to US,900, and now most freight rates have further dropped to US,500.
Industry insiders pointed out that the West American route was affected by overtime ships, which led to a significant increase in supply, and cargo volume was not as hot as before. However, because some return ships were still delayed, supply and demand offset each other. During this week, the freight rates on the US-Western route fluctuated greatly, while in contrast, the freight rates on the US-Eastern and European lines remained relatively stable.Judging from the current weekly freight price trends, the market is gradually undergoing price corrections, but there will not be a sharp decline or flash crash. It is expected that freight rates will continue to show a slow downward trend throughout July.
Executives of freight forwarding companies and shipping companies also pointed out that due to the successive launch of overtime ships and new routes, the current market freight rate between the United States and the West has dropped from a maximum of ,500 on July 1 to ,500. Several large freight forwarding companies have also negotiated with shipping companies. The signed low-cost long-term contract price quoted a freight rate of less than US,000. The market freight rate may fall further next week.
According to industry analysis, the annual long-term contract signed between large and very large freight forwarding companies and shipping companies has a freight rate of about US,700 per large box. After adding peak season surcharges, it is about US,500. This freight rate is a fixed freight rate (FIX). Spot freight The market freight rate is the uniform freight rate (FAK). Generally, the fixed freight rate is only signed by shipping companies for 20% to 30%. Calculated at 20%, if the freight forwarding company delivers five containers, one only needs to pay US,500 for freight, and the other four have to pay. 00,On average, the freight rate per large box is US,700, so some freight forwarding companies receive the goods at the cost price of US,700 plus US0-300, so the freight rate is lower than US,000.
In view of the oversupply of space in the market, large and ultra-large freight forwarding companies have proactively adopted price reduction strategies to stimulate shipments and demonstrated their willingness to make profits. However, in order to obtain freight rate discounts that are far lower than the prevailing market conditions, two conditions are usually required: first, to establish a long-term and good cooperative relationship with the freight forwarding company, and second, to be a frequent customer with large shipment volume. It is worth noting that when freight rates below US,000 appear on the market, this move is likely to have an impact on the spot market and shake price stability. Accordingly, some freight forwarding companies predict that next week's FAK (flat rate) price reduction may be further expanded.
Currently, the freight rate on the East Coast route is stable between US,000 and US,600 per large box, while the freight rate on the European route remains at US,700 and US,000 per large box. The market is taking a wait-and-see attitude regarding the loosening of freight rates and whether adjustments will be made. Freight forwarding companies are still waiting for new quotes from shipping companies in the past two days. It is worth noting that the price increase plan originally scheduled for the middle of this month has been canceled under the leadership of Mediterranean Shipping Company.
In addition, for the near-ocean route, the freight rate per box of the Southeast Asian route (Singapore) was US3, a weekly increase of US, or 3.15%; each TEU from the Far East to Japan's Kansai and Kanto was the same as the previous period, and each TEU from the Far East to South Korea fell. .
