Sudden! Freight prices soared 21.6%!

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The Shanghai Export Container Comprehensive Freight Index (SCFI) released by the Shanghai Shipping Exchange showed that on December 13, the index was 2384.40 points, an increase of 5.7% from a week ago.

Among them, freight rates on the North American route have skyrocketed. On December 13, the market freight rates (sea freight and sea freight surcharges) exported from Shanghai Port to the basic ports of the West and East United States were US,023/FEU and US,494/FEU respectively, which were higher than a week ago respectively. Increases of 21.6% and 11.6%.

Data released by the U.S. Bureau of Labor Statistics showed that the United States added 227,000 non-farm jobs in November, the largest increase in six months. However, as the negative impact of previous hurricanes and strikes dissipated, the unemployment rate rose slightly to 4.2%, showing that the U.S. labor market is not stable.

Analysts from the Shanghai Shipping Exchange said that transportation demand on North American routes is generally stable. Against the background of continued decline in market freight rates in the fourth quarter, some shipping companies have made technical announcements of increases in booking freight rates, and booking prices in the spot market have increased significantly.

However, the analyst emphasized that since the market reflects that the supply and demand relationship of shipping capacity has not changed, it is difficult to substantively support the sharp increase in freight rates.

In contrast, freight rates on European routes are still relatively sluggish and have fluctuated slightly recently.

Recently, the growth of European route transportation demand has been weak, the supply and demand fundamentals lack further support, and the booking price in the spot market has fallen. On December 13, the market freight rate (shipping and shipping surcharges) exported from Shanghai Port to European basic ports was US,963/TEU, down 2.2% from a week ago.

In addition, freight rates on the Persian Gulf route and Australia-New Zealand route have also increased in the past week.

Transportation demand in the Persian Gulf region currently remains at a high level, and market freight rates continue to rise, supported by local tensions. On December 13, the market freight rate (sea freight and sea freight surcharges) exported from Shanghai Port to the basic port of the Persian Gulf was US,507/TEU, an increase of 2.2% from a week ago.

The demand for various materials in Australia and New Zealand shows signs of stabilizing, the fundamentals of supply and demand have improved, and market freight rates have rebounded. On December 13, the market freight rate (sea freight and sea freight surcharges) exported from Shanghai Port to Australia and New Zealand basic ports was US,922/TEU, an increase of 8.6% from the previous period.

Sea freight prices from Asia to Europe and the Mediterranean increased last week, with prices to Europe at ,300/FEU, close to pre-Chinese New Year levels in January.

Freight rates may have risen on pre-Chinese New Year demand, as Asia-Europe/Mediterranean shippers need to ensure they have enough inventory moving out of Asia before the holiday slowdown or risk extended wait times due to container diversions around the Cape of Good Hope , because these containers can only be transported after the Chinese New Year.

Carriers will be working to increase rates for the mid-month GRI, a trend that will hopefully only intensify as the end-January holiday approaches.

Transpacific shippers do not face this early increased New Year urgency, so pre-holiday demand may not pick up for several weeks.

Without this additional pressure, and ahead of the growing likelihood of a strike by ILA workers on January 15, the window for shipping and receiving cargo from Asia closed, so last week's rates retreated.

Carriers will try to push prices higher with the GRI in mid-December, targeting increases of ,000 to ,000 per FEU, although increases may only be successful closer to the Lunar New Year.