Breaking news! Freight rates hit limit down across the board! Shipping companies suspend sailings!

The latest data from the latest issue of the Shanghai Shipping Exchange shows that on January 30, the Shanghai Export Container Comprehensive Freight Index fell from 1457.76 points to 1316.75 points, down 9.7% from the previous issue. Among them, the sea freight from Shanghai to the West and East United States, European basic ports, and Mediterranean ports has rarely reached a collective limit!

Shanghai Port to the West Coast was US,867/FEU, down 10.4%

Shanghai Port to US East was US,605/FEU, down 10.0%

Shanghai Port to Europe was US,418/TEU, down 11.1%

Shanghai to the Mediterranean was US,424/TEU, down 12.0%

Previously, Drewry's global freight tracking data also showed general and sharp declines:

Many shipping companies have informed that the current freight rates will continue until the end of February, which means that it is possible to increase freight rates only in early March. The situation of the latest SCFI is similar to that of the previous issue. Freight rates on almost all routes have fallen. The Persian Gulf line has experienced a single-week decline of more than 20% for two consecutive weeks. The freight rates of European and American main routes have dropped by more than 10%.

Regarding the reasons for the drop in freight rates, many shipping companies said that during the Lunar New Year in February, Asian countries such as China, Vietnam, and South Korea had a long holiday, and at the same time, Islamic countries entered the fasting month. In response to this situation, cargo owners began to pull goods in advance as early as December last year, resulting in a reduction in expected shipments from now until the end of the year.

According to the analysis of many freight forwarding industry insiders, the oversupply of shipping capacity in the short-term market is relatively obvious, and freight rates are under greater pressure as a result, and the overall price is consolidating and weakening. The subsequent freight rate trend still needs to be observed by the shipping companies' cabin control situation after the Chinese New Year and the recovery of market demand. It is expected that Southeast Asian countries will have short annual holidays and will be the first to resume work and shipment after the year. However, it may not be clear until early or even mid-March for the overall freight rate to bottom out.

Recently, the impact of severe weather on the global supply chain has been intensifying. Following the historic winter storm that paralyzed logistics on the East Coast of the United States, the European logistics network is now facing a new round of severe challenges.

Following Kuehne Nagel and Maersk, CMA CGM has recently issued a delay warning due to severe weather conditions in Europe.

CMA stated that based on the current weather conditions, services in many places in Europe and the company's 6 routes have been affected.Many ships have suspended sailing, anchored in the safest location!

Notice from CMA CGM (January 29, local time)

Currently, the Atlantic coast, including those of France, Spain and Morocco, is suffering from severe weather, affecting navigation conditions.

Among them, the situation in the Bay of Biscay was particularly severe, with unusual intensity and duration.

To ensure the safety of crew and cargo, CMA CGM has decided to berth ships passing through the area in safe locations - a measure that applies to the entire area from southern Morocco to the entrance to the English Channel, with a focus on the Seine Bay and Gibraltar.

Specific services affected include: FAL, EPIC, US, EURAF, LATAM, and SSL. (Sailings in the Bay of Biscay are scheduled to resume on January 31, local time, but the details will depend on weather conditions.)

Latest notice from Maersk (January 29, local time)

On the same day, Maersk also updated freight logistics conditions in Southwest and Western Europe.

In addition, Maersk warned in the notice that as another cold front is about to arrive in Southwest and Western Europe, it cannot rule out further outages next week.

Faced with this systemic disruption, shipping companies have prioritized safety and actively adjusted global shipping schedules. Maersk emphasized that its team is paying close attention to weather changes, arranging ship passages according to weather conditions, and always putting the safety of crews, customer cargo and ships first. This means that ships can only choose to wait until a safe window occurs.

The impact of this disruption will be far-reaching and cascading. Shipping schedules are widely delayed. Ships waiting in the Bay of Biscay will cause all subsequent shipping schedules to be postponed, and the impact will spread to the global network.

The problem of cargo backlog in Northern Europe is prominent, and the inefficiency of the Port of Gdansk has caused a large amount of cargo destined for Central and Eastern Europe to accumulate in frontier hub ports such as Rotterdam and Hamburg. Supply chain plans are disrupted, and European manufacturing industries that rely on "just-in-time" production, as well as the inventory replenishment of e-commerce platforms, will face the risk of supply interruption.

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