In the past two years, sea freight rates have been rising, and sky-high freight rates have been "live for a long time", which has brought considerable pressure to foreign trade companies. After experiencing unprecedented prosperity, the recent decline in freight rates of major routes has continued to expand, and the "price-killing" in the container shipping market has become increasingly fierce....
freight rates have fallen for 14 consecutive weeks!
Shipping company "snatch prices and grab goods"
According to the latest data released by the Shanghai Aviation Exchange on September 16, the SCFI index continued to fall 249.47 points to 2312.65 points last week, continuing to hit a low since December 2020, and the decline slightly converged to 9.73% compared with the previous week. Compared with the historical high of 5109 points at the beginning of the year, the cumulative decline of the SCFI index was close to 55%, falling for 14 consecutive weeks, and has been halved since the historical high at the beginning of the year. Among the main routes of
*SCFI trend chart
, the US Western Front fell sharply last week, with freight rates per FEU falling by $434 to $3,050, a drop of 12.45%, and plunging by 62.42% compared with the high of $7,900 at the beginning of the year. It is expected that the US Western Front will fall below the $3,000 mark this week. The FEU per FEU on the US Eastern Front was $7176, down $591 weekly, down 7.6%, down 40.08% from the high at the beginning of the year.
European line is also difficult to stop the decline. Each TEU freight rate fell by $332 to $3545, a weekly decline of 8.56%, a cumulative decline of 54.53% compared with the high at the beginning of the year. The Mediterranean line freight rate fell below the $4,000 mark, falling to $3,777, down $445 per week, a drop of 10.54%.
South American line (Santos) freight rate per TEU fell 841 USD to 6342 USD, a drop of 11.71%. The Southeast Asian Line (Singapore) freight rate per TEU was $403, down $60 per week, a drop of 12.96%.
However, last week, the freight rate of the Korean line in the near-ocean line rebounded slightly by US$12, with freight rate per TEU increasing to US$265, a weekly increase of 4.74%, the only rising route among all routes.
Industry insiders pointed out that the SCFI index is the average covering spot prices and long-term prices. Last week, the freight rate of the US West Front reached a turning point of $3,050. However, in the spot market, it has fallen below $3,000, and the spot price per FEU in the European line has also fallen below $5,500 to $6,000. The major routes all fell sharply, indicating that the consumer demand in Europe and the United States is weak, and the pressure of shipping companies to fill the cabins is high, which triggers price cuts and grabs goods.
rare history!
Shipping Company canceled more than 100 voyages!
As freight rates continue to fall, the transportation company has taken measures to regulate its transportation capacity and tried to alleviate the decline in freight rates.
According to the latest data released by Drury on September 16, the three major shipping alliances in the world canceled a total of 101 voyages in the next five weeks (weeks 38-42). 2M has announced the cancellation of 40 voyages, followed by The Alliance and Ocean Alliance, which canceled 33.5 voyages and 27.5 voyages respectively.
Among the 750 scheduled voyages, among the major routes such as the Trans-Pacific, Transatlantic Ocean and Asia-Nordic Europe and the Mediterranean, there were 122 cancellations announced between Week 38 and Week 42, with a cancellation rate of 16%. During this period, 68% of blank voyages will occur in the eastbound transPacific, 24% in the Asia-Nordic and Mediterranean, and 8% in the westbound transatlantic trade.
Drewry said the container shipping market continued to be weak, with spot freight from China falling month-on-month, faster than expected, as it was caused by weak container demand, adequate inventory, shifting consumer spending from goods to services and an uncertain economic environment. When shipping companies try to adjust capacity and reduce freight demand, a large amount of air-speed has appeared on major East-West trade routes.
As the SCFI index continues to fall, the transportation companies are also beginning to face pressure to renegotiate long-term freight rates. Major shipping companies, including Yangming Shipping and Wanhai Shipping, have confirmed that the effect of the collapse of freight prices has expanded, and customers have begun to ask the shipping company to ask the shipping company for another bidding for freight rates. They are facing pressure to adjust prices and are discussing long-term contract customers one after another, and it is not ruled out that they will be flexible to different customers.
Do you want the "synthetic fiber" report benefits?
products include: PX (paraxilene), PTA (subsequent terephthalic acid),
ethylene glycol, caprolactam, acrylon, nylon6...
Follow and chat privately, and the report will be sent immediately!
