The “crazy” shipping continues to fall, the “difficult to find a space” situation has been reversed, instead, shipping companies are holding the space around looking for cargo.
Data released by Drury, Baltic sea, Shanghai Hna Exchange, Ningbo Shipping Exchange and other shipping consulting institutions show that spot freight prices of some routes from Asia to Europe and the United States continue to decline, and the demand for collective transportation is also declining.
“Sky-high” sea freight continues to fall, export enterprises feel not obvious
Affected by the epidemic, sea freight remained high in 2021, and has fallen significantly since the peak in the Spring Festival. So far, they have averaged about 20%. The United States east the United States west route appears larger drop, The European route drop is larger.
On May 13, the latest Edition of the Baltic Sea Freight Index FBX showed prices from Asia to the western US falling to $12,512 per 40-foot container, the lowest since July last year.
Transport costs remain high, with more space available but higher towing costs
The drop in freight rates indicates that the demand side of the shipping market is slipping. Demand for seaborne container shipments has fallen for a fifth straight week, according to the latest data from shipping consultancy Sea Intelligence.
Last year, the situation of “difficult to find a cabin” has been reversed. Instead, shipping companies scour the shipping space for cargo. The most obvious is, according to the feedback of textile export enterprises, the present cabin is sufficient and surplus, unlike last year, the need to grab the cabin. Recently, there are more forwarders selling shipping space, booking space is much easier than last year. Carrier performance is more obvious, before the ship company 20GP small container, on the cargo is also strict weight limit, and now the basic is to take the principle of nothing to refuse.
Foreign trade order quantity fluctuates now, freight forwarder starts to fight price war
At present, the supply of shipping space exceeds demand, and the freight forwarder is extremely busy. The order conversion rate is low, and there is no market for prices. Already freight forwarder begins to hit price war, low snatch goods. Despite this, freight forwarder counterparts said that the recent volume of goods than the same period in previous years declined by two or three.
Freight forwarder business and seller shipments are closely linked. In addition to the epidemic not shipping factors, foreign trade orders also fluctuate.
For many foreign trade enterprises, orders increased sharply last year because of the epidemic abroad. But customer orders fell more this year, even less than in 2019. Some export enterprises say that for products with high value, the sea freight of a container going to Europe accounts for 20%-30% of the value of the goods, and the sea freight of products with low value can account for more than 50%. For foreign buyers, this is comparable to what they would pay directly in Europe and also saves time and customs duties.
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Post time: May-19-2022