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Rising to $10,000! This shipping company restarts Asia-Europe routes

Samira Samira 2024-06-04 09:50:20

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~

Companies moving goods from Asia next will have to pay up to ,000 for an expedited full-size container over the next month, about double current spot prices, according to prices circulating among carriers and importers.


Shipping giant raises shipping prices


On May 29, CMA CGM SA, the world's third largest shipping company headquartered in Marseille, France, announced that the price of shipping a 40-foot container from Asia to Northern Europe in the second half of June will be raised from the current approximately US,000 to US,000.


Prices in the first half of June ranged from ,000 to ,500, with premium services ranging from ,500 to ,000.



For some time to come, the global shipping market will still face uncertainty and challenges.


Global shipping market is challenged


Galaxy Futures pointed out that due to the fermentation of conflicts in the Red Sea and problems such as ship transfers, congestion at transit ports such as Singapore is serious, which may once again disrupt the global supply chain.


Container congestion at the Port of Singapore has reached unprecedented critical levels, according to a new report from Linerlytica. Currently, a large number of ships are queuing up outside the port to wait for berthing, and the backlog of containers exceeds 450,000 TEUs.


A recent research report released by CITIC Securities pointed out that freight rates on many routes including Asia-Europe and the United States continue to rise. Due to the market uncertainty caused by the Red Sea crisis and the recent increase in GRI by many shipping companies, shipping costs from Asia are rising.


CITIC Construction Investment said that although compared with the same period last year,Except for the slight decrease in the Asia-Europe route, the overall transport capacity remained stable on other routes., however, due to the situation, ships need to detour around the Cape of Good Hope due to the epidemic, resulting in longer transportation times. Therefore, more ships need to be deployed on the Asia-Europe route and the trans-Pacific route, resulting in market expectations for tight space.



The container shipping industry is struggling to meet growing demand in the United States and Europe in the face of current stretched capacity due to attacks in the Red Sea.


“Companies are changing inventory strategies to deal with longer delivery times and changes to normal shipping patterns,” said Trine Nielsen, senior director and head of EMEA ocean business at San Francisco-based logistics technology company Flexport. “Some companies even placed repeated orders or increased booking quantities to secure positions.”


This shipping company restarts Asia-Europe routes


In May, container shipping spot prices jumped sharply to record highs (except during the epidemic), and many analysts pointed to similar situations during the epidemic, where a sudden surge in demand led to fleet constraints, further leading to container shortages, port congestion, and finally Pushing up spot freight rates.


Another similarity between the current container market, where freight rates are soaring, and the epidemic period is the return of opportunistic and niche operators.


Recently, Alphabliner reported that a subsidiary of British freight group UniServeEllerman Cityliner will offer routes from China to Europe in June and July.


The shipping company plans to call at Ningbo and Shenzhen Dachan Bay Terminals in China, and then head to Casablanca, Morocco and Tilbury, England.


Two vessels will be deployed on the route -"CapeHellas" wheel and "Buxfavourite" wheel, with a shipping capacity of approximately 2,500-2,700 TEU.


UniServe created the Ellerman brand in late 2021 and after operating routes from China to the UK for about 13 months, it shifted its focus to transatlantic routes.


But now, perhaps attracted by the current high freight rates on the Asia-Europe route, Ellerman has turned his attention again to the route from China to Europe.


In addition, data shows that the total throughput of China's ports continued to grow in the first quarter, mainlyThanks to the recovery in demand in the United States and the European Union.China's cargo throughput increased by 6.1% year-on-year, and the container throughput of the eight major ports increased by 10%.


In addition, the development of the Western Land-Sea Corridor and the China-Europe Railway have also contributed to an increase in throughput. Although China's exports fell by 2% year-on-year in the first quarter, exports to ASEAN increased significantly.


However, higher U.S. tariffs could dampen China's port throughput growth. Overall, China's ports are still facing complex situations, but the growth trend in throughput remains unabated.