Currently, the continuous surge in global shipping freight has attracted attention in the world economy and trade.
On the one hand, shipping costs have soared continuously; on the other hand, manufacturing and foreign trade importers and exporters are suffering miserably. In stark contrast, the international shipping industry once became the target of public criticism.
◆The Global Container Freight Index launched by the Baltic Shipping Exchange and Freightos shows that as of the 12th, the shipping prices of China/Southeast Asia-North America West Coast and China/Southeast Asia-North America East Coast continued to rise slightly, both exceeding the US$20,000 mark: respectively The prices were US$20,586/FEU (40-foot standard container) and US$22,173/FEU, both increased by more than 500% compared with the same period last year. The prices in the same period last year were more than US$3,800.
◆ Drewry also reported that as of September 9, the spot freight rate from Shanghai to Los Angeles was 11,568 US dollars/feu, a year-on-year increase of 199%, while the spot freight rate from Shanghai to Rotterdam was 14,287 US dollars/feu, a year-on-year increase of 56%. 4 %.
first shot! CMA CGM
html On September 9, the world's third largest container shipping company, the French CMA CGM with 570 container ships , suddenly fired the first shot and announced a "frozen freight increase": it will be effective until February next year. , maintaining all spot container rates.
ＣＭＡＣＣＭＭ also specifically stated in the freeze-up statement, “Faced with the unprecedented situation in the shipping industry, we choose to put long-term relationships with customers first.” In other words, the shipping line is accepting a small drop in profits to support customers, even as conditions suggest spot ocean rates may rise in the coming months.
As soon as the news came out, the market was in an uproar. Some people in the industry immediately said that CMA CGM had thrown a hot ball to competitors. In order to retain customers, major airlines were under great pressure from CMA CGM. Next, CMA CGM will fight alone like a hero? Or set off the domino effect of and , and the shipping industry will follow suit and reduce freight rates?
The answer is here. ． ．
has a domino effect, but there is no applause. ． ．
Second shot! Hapag-Lloyd !
html On September 12, just three days after the first shot was fired at the French CMA CGM, the world's fifth largest container shipping company (HAPAG-Lloyd) also joined the "frozen increase" ranks.
It is reported that the German container shipping company has not further raised freight rates for several weeks.
Hapag-Lloyd said, "We believe that spot freight rates have peaked. We do not pursue further increases in freight rates. We hope that the shipping market will slowly start to calm down."
The third shot! The fourth shot! ． ． ． Maersk , ONE, Han Xin Shipping?
CMA CGM and HAPAG-Lloyd’s move to freeze freight rates has aroused the attention of other shipping companies to a large extent. Is it following? Or don’t follow?
It is reported that Maersk, the world's largest container shipping company, and Japan's ONE Company will also announce the suspension of freight increases.
As a result, five of the world's top ten container shipping companies have announced frozen freight increases, which are expected to be frozen until February next year.
However, the market does not appreciate the shipping company's "cutting off its own wrists"
Regarding the shipping giant's "cutting off its own wrists", stakeholders such as the manufacturing industry, suppliers, and shippers do not seem to buy it. ． ．
Firstly, it is believed that there is a suspicion of avoiding sanctions.
When some shippers talked about the issue of several major airlines setting freight ceilings, they revealed that these airlines will have no space to sell before the Lunar New Year next year, and the suspension of freight increases is of great concern. The market has little effect, and it is believed that they are worried that the sharp rise in freight rates will attract attention and prompt the authorities to take sanctions, so they adopt expedient measures.
"They seem to have no choice, because many countries have begun investigating high freight rates, such as the United States, Thailand, South Korea, etc." A shipper said.
For example, in the United States, due to the continuous soaring of sea freight, shippers have expressed misery. The chaos of frantic grabbing of space has attracted the attention of the US authorities. The US Federal Maritime Commission (FMC) therefore investigated the surcharges of shipping companies.
Others in the market interpreted that the "frozen increase" of several shipping giants this time has a strong declarative significance, and this approach of retreating in pursuit of progress means that they hope that sea freight rates will remain at the current high price and will not be reduced.
Second, the surcharge is not covered by the "limited increase".
Some market consulting agencies stated that the freeze on ocean freight rates only freezes spot freight rates. This does not necessarily rule out the possibility that surcharges will increase additionally, and this has become a significant burden for importers and exporters, and the additional charges are often excluded from the freight basis.
Some freight forwarders complained that CMA CGM’s frozen increase in spot freight rates does not include surcharges. There will be no increase in spot freight rates from September 9 to February next year. However, according to the company’s announcement, the surcharge in October will be We still charge US$2,000, including round trip. Therefore, in fact, freight rates ultimately still depend on market supply and demand.
Another shipper stakeholder said, "We will not regard this as an olive branch. Currently, the freight cost of shipping a 40-foot standard container from China to the East Coast of the United States has exceeded US$20,000, which is much higher than that of two years." The former US$3,000, even if the price does not increase, the shipping company has already made a lot of money.”
— Brief comment—
Several major shipping giants have “frozen increases”. Will the shipping market “cool”?
◇ Some analysts said that the frozen freight rates of several shipping companies will hardly change the current situation of global container shipping being in short supply. The explosive freight rates will not "cool down". Changes in supply and demand still come from the strength of seasonal demand. This will be reflected in the revenue of major shipping companies from October to November, and the fourth quarter is expected to be the profit peak of the shipping industry.
◇ Industry insiders suggest that we continue to pay attention to the trends in two aspects:
First, the follow-up status of other shipping companies;
Second, the trend of actual spot freight rates.
Source - Maritime Service Network
