Europe & U.S. Trade Lanes Fully Booked! Freight Rates Changing Daily! Multiple Shipping Lines Suddenly Announce Further Rate Hikes in June
The latest updates on recent route liquidation and shipping company price increases (latest in May)
According to recent maritime NEWS reports, the global container shipping market has once again entered the "space grabbing mode".Many popular routes such as Europe, the United States, the Middle East, the Red Sea, and Southeast Asia have successively experienced cabin explosions, dumping of cargo, tight space, and continued increases in freight rates., many leading shipping companies also simultaneously issued notices of price increases in June, and market sentiment increased significantly.
Judging from the overall market performance, the container shipping industry has gradually entered the traditional peak season rhythm. Try to book space and lock in prices as early as possible to reduce subsequent risks caused by space explosion, container dumping and freight rate fluctuations.
As the traditional peak season gradually deepens,Will the global shipping market next Once again ushering in a new round of "freight price peak"” has also become the focus of attention of the entire industry.
Henan Gangtong International Logistics
NEWS
1. Which routes are experiencing liquidation?
European and American lines: cabin space is the most tight
At present, routes to Europe, the West and East of the United States are experiencing cabin explosions to varying degrees. According to effective market data feedback:
1. The East China and West America lines were the most serious in terms of warehouse liquidation.
2. Some voyages have stopped releasing space.
3. The phenomenon of “dumping cabinets” has increased significantly.
4. Some freight forwarders reported that “there is cargo but no space”
Industry estimates:The peak of the European and American lines may last for 1-2 months, and freight prices will remain high in June.
Red Sea and Middle East routes continue to be tense
Affected by the Red Sea situation:
1. A large number of ships continue to circumnavigate the Cape of Good Hope
2. Voyage extension
3. Effective transport capacity decreases
Recently, freight rates on Red Sea-related routes have increased by about 40%-50% compared with April, and shipping companies have begun to focus on pushing up FAK and PSS in June.
Southeast Asian routes are experiencing significant liquidation
Since April: Seats on popular routes such as Vietnam, Thailand, Singapore, and Malaysia have continued to be tight.
Market situation:
1.40HQ freight rates increased by more than 15% in two weeks
2. Some direct ships are “hard to find a cabin”
3. Booking needs to be made 7-10 days in advance
4. Customs cut-off time is advanced
Main reasons:During the peak replenishment season in Southeast Asia, China’s export volume increased and manufacturing moved to Southeast Asia.
NEWS
2. Shipping companies’ latest price increases (latest in May)
Recently, almost all leading shipping companies are pushing up freight rates in June.
MSC (Mediterranean Shipping Lines)
Latest market quotation:
European line in the first week of June: SS large container is about 3940 US dollars, FAK large container is about 4140 US dollars
At the same time: European lines continue to control cabins, and there is an obvious trend of giving priority to high-priced cabins
Maersk
Recent actions: Opening of European shipping space in the 23rd week, Shanghai-Hamburg quotation is about US,000/40HQ, Shanghai-Rotterdam is about US,800/40HQ
It has also been announced previously that PSS peak season surcharges will be levied on many routes from Asia to Europe, the Mediterranean, the Middle East, and South Africa.
CMA CGM (CMA CGM)
CMA CGM has recently taken the lead in launching a new round of price increases:
Prices for many routes in Asia, Europe, Asia-Mediterranean, North Africa, and Latin America have been raised simultaneously.
Some routes have increased by more than 30%, driving other shipping companies to follow suit.
Hapag-Lloyd (Hapag-Lloyd)
Hapag-Lloyd has also recently joined the price increase camp:
In June, GRI, European routes, and US routes were launched to simultaneously adjust prices and strengthen cabin control. The industry reported that its cabin approvals have become significantly stricter in the near future.
NEWS
3. The core reasons behind this round of price increases
① The Red Sea crisis continues. This is the core factor at present.
Detours lead to: an increase in voyage distance of 10-14 days, a decrease in ship turnover, and a reduction in global effective shipping capacity, which directly drives up freight rates.
② Europe and America prepare goods in advance
Importers in the United States and Europe have recently begun to replenish inventory in advance: Christmas stocking has been moved forward, e-commerce platforms have stocked up in advance, and some customers are worried that subsequent price increases will lead to a sudden increase in shipment volume.
③ The shipping company actively controls the cabin and prices
At present, shipping companies have clearly learned the lessons from last year’s “price war”: reducing low-price cabins, controlling the pace of cargo release, and collectively promoting PSS/GRI markets with a strong willingness to raise prices.
NEWS
4. What’s next for the market?
The current common judgment in the industry is:
Short term (May-June):Freight prices still have room to rise, cabin explosions will continue, and container dumping may intensify
In the mid-term (after July) the market may begin to diverge:The European route may be subject to a correction, the demand for the US route is still strong, and the Southeast Asian routes are expected to continue to be prosperous.