Freight rates are set off in advance during the peak season, shipping space is in short supply, container dumping occurs frequently, and direct flights become transfers.
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With the traditional peak shipping season arriving ahead of schedule, the global container shipping market is heating up again. The latest freight index shows that international container freight rates have jumped sharply, with many trunk routes rising simultaneously. However, for cargo owners and freight forwarders, the most troublesome issue currently is not only the high freight rates, but also the serious shortage of space supply, frequent container dumping, and the continued increasing uncertainty in transportation plans.
The latest World Container Index (WCI) released by Drewry on June 4 showed that the composite index rose sharply by 23% from the previous week, reaching US,433 per 40-foot container. Since the end of February this year, the index has increased by more than 80%.
Looking at different routes, the trans-Pacific direction has the most prominent increase. The freight rate for the Shanghai-Los Angeles route increased by 31% on the week to US,565/FEU; the freight rate for the Shanghai-New York route increased by 20% on the week to US,505/FEU. The Asia-Europe route also performed strongly: the freight rate from Shanghai to Rotterdam increased by 25% to US,579/FEU; the freight rate from Shanghai to Genoa increased by 20% to US,089/FEU.
Market analysts believe that this round of freight rate increases is mainly driven by the early start of the peak season. On the one hand, some cargo owners are shipping goods in advance to avoid possible future tariff adjustments in the United States; on the other hand, the logistics demand for World Cup-related goods is expected to heat up, further stimulating booking demand. Affected by this, many liner companies have successfully implemented peak season surcharges (PSS) and a new round of freight rate adjustments. It is expected that freight rates will still have room to rise in the coming weeks.
The cabin space is extremely tight, and the rate of dumping cabinets remains high.
While freight rates are rising rapidly, space resources are approaching saturation. The situation of shipwrecks at major export ports such as Yantian, Nansha, and Ningbo has intensified significantly. Industry sources show that the container rejection rate at some ports has reached as high as 55%, and the delayed shipment rate of goods on some routes has even exceeded 80%. Some freight forwarders reported that only a few of the 20 containers originally booked were able to be shipped as planned.
The seats on the American and European routes in East China have been basically sold out in early June, and "book one flight and skip the next" is becoming the norm in the current market. The industry predicts that this round of shipment peak may last for the next 1 to 2 months. For market participants, the current biggest problem has changed from "whether freight prices will continue to rise" to "whether freight rates can be successfully obtained and shipped on time."
Direct flights changed to transit, and some goods encountered secondary dumping
At the same time, some freight forwarders have recently encountered new transportation risks. Industry insiders reported that some US line cargo was shown as a direct service when booking space, but after the ship left the port, it was temporarily adjusted to transit via Busan, South Korea. The shipping companies involved include major liner companies such as Maersk, Yang Ming Shipping and Ocean Network Shipping (ONE).
What is even more troubling is that some containers were dumped again after arriving in Busan, with delays ranging from a week to half a month. During the entire process, many customers did not receive proactive notifications from the shipping companies, and many freight forwarders only discovered that the transportation route had been changed when they checked the ship's status on their own.
Industry analysts pointed out that such situations are directly related to the terms of the shipping company's bill of lading. Most carriers reserve the right in their bills of lading to adjust routes, ports of call and transshipment arrangements based on actual operational needs. When shipping space is extremely tight, shipping companies usually give priority to protecting key customers and core cargo sources, while temporarily transshipped cargo faces a higher risk of rollover. Once subsequent ships at the transit port also burst, these containers may be delayed again for shipment, further lengthening the overall transportation cycle.
For cargo owners, the most direct impact is the delay in delivery time; for freight forwarders, the pressure on explanation, coordination and customer communication caused by temporary changes in transportation plans has also increased significantly.
Industry insiders suggest that in the current market environment, cargo owners and freight forwarders should focus on confirming whether service products include direct shipping commitments before booking space, and understand the relevant space guarantee terms and the coverage of container dumping risks at transit ports, so as to reduce uncertainty in the peak season transportation process.
