This article comes from " Overseas Cross-Research Center, foreign shipping is comprehensively compiled from Maritime Network, Ningbo Shipping, etc. "
Recently, CMA CGM announced that it has decided to take measures to reduce container transportation costs for imports to France and French overseas territories.
The move was in response to a call from the French government. A few days ago, French Finance Minister Le Maire put pressure on the country's largest energy company (Total Energies) and shipping company (CMA CGM), requiring them to use part of their huge profits to help consumers cope with high inflation.
and noted the hope that CMA CGM would offer freight discounts to its customers and Total Energies reduce the country's high prices at gas stations.
According to preliminary official data, France's inflation rate climbed further in June from the previous month, reaching a record high of 6.5%. Statistics agency Insee said sharp rises in energy and food costs pushed consumer prices up to 6.5% in June from 5.8% in May.
Recently, CMA CGM issued a statement saying that after consultation with the Ministry of Economy, Finance, Industry and Digital Sovereignty, CMA CGM Group decided to take targeted measures to contribute to reducing consumer prices for French families.
Specific measures include:
▪ Freight charges reduced by €500 ($520) per 40-foot container for all goods imported by major French retailers
For consumer goods imported through French ports, CMA CGM will provide its retail customers with a per 40-foot container Container discount of 500 euros. The company said , this measure means that sea freight is reduced by nearly 10%.
CMA CGM also stated that in order to maximize the impact and ensure effective reduction of consumer product prices, this measure must be implemented together with these brands.
▪ Reduction in container freight charges for all goods imported into French overseas territories
For all goods imported into French overseas territories, the freight charges for a 40-foot container will be reduced by up to €500. CMA CGM said this reduction amounts to a freight reduction of 10% to 20%, depending on the destination.
CMA CGM said in a statement that these measures will be implemented from August 1, 2022 and will be valid for one year. and called on retail chains to pass on the reduced prices to consumers.
02 Spot freight rates fell across the board for the first time
At the same time, the latest World Container Comprehensive Freight Index (WCI) released by the British consulting agency Drewry also showed that freight rates continued to fall by 3% to US$7,066.03 last week. /FEU.
It is worth noting that the spot freight rate of the index, which is based on eight major routes in Asia, America, Asia and Europe, and Europe and the United States, has experienced a comprehensive decline for the first time.
The WCI Composite Index fell 3% last week and is 16% lower than the same period in 2021. Drewry's year-to-date WCI average composite index assessment is $8,421/FEU, still $4,930 higher than the five-year average of $3,490/FEU.
The spot freight rate from Shanghai to Los Angeles fell by 4% or US$300 to US$7,652/FEU. is down 16% from the same period in 2021.
Shanghai-New York spot freight fell 2% to $10,154/FEU. is down 13% from the same period in 2021. The spot freight rate of
Shanghai- Rotterdam fell by 4% or US$358 to US$9240/FEU. is down 24% from the same period in 2021.
Shanghai-Genoa spot freight fell 2% to $10,884/FEU. is down 8% from the same period in 2021.
The spot freight rates of Los Angeles-Shanghai, Rotterdam-Shanghai, New York-Rotterdam and Rotterdam-New York all experienced a 1%-2% decrease.
03 Freight prices will continue to fall in the next few weeks.
Some industry investment consultants said that the shipping super cycle has ended, and freight rates will accelerate from the second half of the year.
According to its estimates, global container transportation demand growth will slow down from 7% in 2021 to 4% and 3% in 2022 and 2023. The third quarter will be the turning point.
From the overall supply and demand relationship, the supply bottleneck has been opened and there is no longer a loss in transportation efficiency. In 2021, ship loading capacity will increase by 5%, and port congestion will cause an efficiency loss of 26%, reducing actual supply growth to only 4%.
However, during 2022 and 2023, with the widespread vaccination, the chain effect of the original restrictions on port loading and unloading has been significantly alleviated from the first quarter. Truck and intermodal operations have gradually resumed, container flows have accelerated, and the number of dock workers quarantined has decreased. And cancel the slowdown, increase the ship's speed, etc.
It is worth noting that once demand declines in the third quarter, transportation efficiency is expected to further improve. It is expected that with the gradual recovery of the 26% efficiency loss caused by the port congestion, actual supply growth will significantly accelerate to 25% and 13% in the same period. .
The third quarter is the traditional peak season for shipping. Industry insiders said that according to the usual practice, European and American retailers and manufacturing industries start to pull goods in July, but this year there is a strong wait-and-see atmosphere, especially since the demand for Shanghai's unblocking is not as expected. The soaring freight prices in the peak season of last year's shipping may not be repeated, and the cargo volume, The trend of freight rates will probably become clearer in mid-to-late July.
analysts believe that the current market is full of variables. Factors such as the Russia-Ukraine conflict, global strikes, interest rate hikes by the Federal Reserve, inflation and other factors may suppress demand in Europe and the United States. In addition, the cost of raw materials and transportation logistics is high, and foreign trade manufacturers are also becoming conservative in preparing materials and production. , may affect the motivation to pull cargo; at the same time, the number of ships in Merseyside Port has increased, the supply of shipping capacity has increased, and freight rates have continued to consolidate at a high level.
