Watch | Export demand is positive!Will the sea freight cut continue?

Since the end of September, the soaring sea freight rate has seen a significant correction for the first time in two years.The personage inside course of study said, freight cut may only be temporary, mainly in the domestic power limit policy and "11" long holiday part factory cut under the influence of shipment reduction, global port congestion and supply chain chaos has not ease, with the arrival of "black five" and "Christmas", export demand growth, freight cut trend may not continue. Plug connectors, idc socket and yard reflectors should be noted.

China far sea control related personage said that the recent ship company freight rates remained stable, the main export trunk load rate maintained full load.Freight rates are affected by market supply and demand relationship, terminal operation efficiency, container logistics supply chain efficiency and other factors, and are not expected to change much in the short term.
Market demand to a good power limit recovery

Freight rates to stop the fall of expectations increased

At the end of September, the power restriction policy led to a sharp decline in shipments of major factories, and the reduction of shipping demand ended the continuous rise of shipping freight rates. Subsequently by the National Day holiday, the adjustment of many factories further reduced the temperature of the shipping market.Marine freight rates have fallen for four consecutive weeks so far.

The Drury Container Index (WCI) on October 21 showed the index continued to fall 0.4% this week but significantly narrower from last week, which fell 2.3% last week.

The latest data of China's export container index is 3300.34, down 0.9% from the previous period. On the whole, the downward trend of freight rates has slowed down, but the subsequent trend of freight rates is still unclear, and the freight rates of some routes have begun to pick up.

Industry insiders said that in two weeks after the price increase, the latest offer is 26 yuan / kg, and the lowest offer in late September is 18 yuan / kg.

Analysts believe that the decline in China's maritime freight rates was due to power restrictions caused by poor supply, not caused by a sharp decline in global demand. It is expected that after China's power supply returns to normal, freight rates will stop falling and rebound.

Many companies in Jiangsu that were affected by electricity restrictions at the end of September have resumed production earlier this month and are expected to ship normally in the future.

It is understood that Yiwu, Zhejiang Province, has set off a "delivery tide" due to the substantial freight rate reduction.The backlog of goods caused by high shipping costs and cargo ship constraints has gradually eased, and a large number of wait-and-see factories chose to ship at this point.According to the relevant personage, due to the centralized release of delivery demand, Zhejiang Yiwu Port has been in a state of warehouse explosion.

However, the shipping tide may not last, freight forwarder said that the local ports experienced more "jump", so the cargo backlog is more serious.A foreign trade enterprise from Ningbo said that current customers began to put forward the previous backlog of goods, although the freight rate has been reduced, but still at a high level before the price increase, the subsequent will be shipped in accordance with the original pace.
Port congestion has intensified in many places around the world

Major airlines added surcharges in October

In fact, the current freight rates are still high.Take the WCI, while still slightly down, maintains its level of $9865.14 per 40 foot container, up 281% from the same period a year earlier.Moreover, the global supply chain chaos has not changed.

Port congestion in the US continues yet to improve, and as the year-end shopping season approaches, a steady stream of goods flock to major American ports.

To ease the problem, President Joe Biden announced that Long Beach and Los Angeles, and logistics companies such as FedEx, UPS, Walmart, Home Depot will extend cargo operations to increase goods supply, but the effect is not obvious.

New data show that ships in the western ports have to wait outside the port for weeks, and the average shipping time from China to the west coast has more than doubled, increasing from major Chinese ports to Los Angeles and Long Beach from 16 to 36 days, according to digital forwarder Shifl.

Europe also faces the problem of port congestion at the end of the shopping season. The sharp increase in demand has prevented the accumulation of terminal goods in time, and further leads to the retention of containers. At present, some ports have suspended the return of empty box business by liner companies.

For example, the British port of Felixto, due to the lack of truck drivers, the inland transport pressure has seriously affected the operation of the entire supply chain, causing goods cannot be shipped out in time and empty boxes to block the port.To this end, Maersk announced on 18 October that it would temporarily transfer the ships currently waiting, and return the cargo to Port Felix-stol through more flexible small ships.

In the face of the "great congestion of the century" and the upcoming Black Friday and Christmas, the huge global supply chain system will undoubtedly face a major test.And the chaos of the supply chain will put great cost pressure on all the links in the supply chain.

Mediterranean Shipping announced three additional additional charges for goods from South China, Hong Kong to East and West China ports, including G R I (comprehensive rate increase), P S S (peak season surcharge) and C G S (Port congestion fee) from October 15.

For East Asia to North America, Herbold, ffy, EVA, COSCO and HMM have announced additional GRI, ranging from $1,000 to $3,000 per FEU.

Post time: Oct-26-2021