First break $10,000! To rise! The container ship market capacity shortage is likely to continue until the end of the year

The imbalance between supply and demand in the freight market is getting worse, with freight rates on the Asia-Europe line breaking the "sky high" of US $10,000 for the first time, and the shortage of capacity is likely to continue until the end of the year.

According to the Drewry World Container Freight Index, freight rates from Shanghai to Rotterdam in the Netherlands climbed to $10,174 per FEU on May 27, up 3.1 percent from the previous week and up 485 percent from the same time last year.The combined rate for eight major routes also rose 2 percent from the previous week to $6,257, up 293 percent from a year ago and the highest level since 2011.

The Shanghai Export Container Freight Index (SCFI) reached 3,495.76 points last week, up 63.26 points from the previous week.Far East to the United States, Far East to Europe, Far East to the Mediterranean continued to record high freight rates.Among them, the freight rate from the Far East to the Mediterranean is $5811 /TEU, up $285;Far East to Europe at $5816 /TEU, up $237;Far East to US East is $7,633 /FEU, up $112.However, rates to the Far East to the West fell to $4,416 per FEU, down $427, or more than 8%.

At the same time, already sky-high market rates will continue to rise.The European line has announced increases of $500 per TEU and $1,000 per FEU starting June 1.Container companies have also indicated that they will start to increase freight rates for the US line from June, but so far they have not quoted.The personage inside course of study thinks, the United States is not quoted quotation difference is not big, need to pay to buy cabin fee.

The rising freight prices are mainly due to the shortage of containers. Under the background of strong consumer purchasing power and enterprises' active stocking up and purchasing, the market demand is booming. The "long shipping ship" running aground in the Suez Canal in late March led to increased port congestion, further pushing up the freight prices.Under the influence of the epidemic, the shipping delay has become more serious, the global ship fleet is in chaos, the ships cannot arrive at the port on time, and the problem of crew infection is expected to expand. All these will worsen the situation of the consolidated shipping market. At present, the waiting time in Shenzhen port has been extended to 3 to 7 days, and Shanghai port, which is the most efficient, also has the phenomenon of waiting for one day.

Given that the third quarter is the traditional peak season for shipping in Europe and the United States, port congestion and container shortages are likely to continue until the end of the year, making freight rates more likely to rise than fall until the end of the year, the industry said.

Bloomberg notes that many shippers in the United States and elsewhere are paying more than $10,000 per container this year, with pricey add-ons such as guaranteeing on-time delivery and delivery.Rising shipping costs are making the supply chain struggles of importers and exporters even more painful.Burlington Stores, the leading department store, said higher spending on its supply chain and deteriorating shipments of goods were likely to keep its operating profit depressed through the end of the year.

Container companies, on the other hand, continue to benefit.Shares in Maersk, the world's largest shipping company, hit a record high earlier this week, while shares in Israel's Star Line have soared this month, tripling from the $15 a share at which it listed in January.