Latest Shipping Market | Strait Controls + Freight Rate Surge! Key Points for June Shipments

The situation in the Strait of Hormuz escalates and ship traffic is restricted

Tensions in the Middle East waterways have intensified since June. On June 11, Iran announced temporary control of the Strait of Hormuz. On the evening of June 13, relevant parties issued a radio warning to suspend passage of passing ships.

On the same day, an oil tanker was attacked in the waters east of Oman. Fortunately, the crew was safe and no oil leakage occurred. Affected by traffic restrictions, a large number of ships were stranded in the Persian Gulf, hindering seafarers' travel and operations. Previous relevant news showed that many parties plan to reach an agreement on June 14, and if it reaches an agreement, passage through the strait will gradually resume.

📈 Freight rates on mainstream routes are rising, and multiple surcharges are coming into effect.

Recently, global shipping has ushered in a price increase cycle. Freight rates for US lines, European lines, and African lines have generally increased. The market space is tight, and cabin explosions occur frequently.

1. Beauty line
   The freight rate for a 40-foot container from Shanghai to the US West is ,149, a month-on-month increase of 9.5%; the freight rate for a 40-foot container from Shanghai to the US East is ,333, a month-on-month increase of 23.6%. Maersk issued a notice that starting from June 17, the fare for 40-foot containers on routes between the Far East and the United States and Canada will be increased by ,000.
2. European line
   The contract freight rates for European routes have been increased simultaneously. The current mainstream freight rate from the Far East to Northern Europe is 00/40 feet. CMA CGM currently operates FAK freight rates from Asia to Europe at a high level, up to 00/40 feet, with an additional peak season surcharge of 00/container. Freight rates on several COSCO Shipping lines in Europe have also been raised simultaneously.
3. african line
   Starting from June 15, CMA CGM will impose a peak season surcharge of 0/TEU on short-term contract cargo from Asia to Africa.

🚢 Leading shipping companies optimize global shipping capacity layout

In light of changes in market demand, major shipping companies have recently intensively adjusted routes and capacity:

• MSC Mediterranean Shipping Company
  Affected by the off-season in the regional market, routes from India to the United States were suspended; on June 13, the Trans-Pacific Express from Yantian and Xiamen to Long Beach in the United States was officially restarted. Its current global market share has risen to 21.5%, a record high.
• Hapag-Lloyd
  The Asia-Europe route network will be streamlined, some non-mainstream routes will be suspended, and transportation capacity will be concentrated to ensure the operation of main routes.
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🛳️ New developments in domestic shipping, the pace of foreign trade shipments is accelerating

On June 9, the new route from Yangpu Port in Hainan to Mundra in India successfully made its maiden voyage, further improving the free trade port’s maritime channel to South Asia.

At this stage, foreign trade companies are concentrating shipments to avoid risks and prepare goods in advance. This is coupled with the demand for overseas replenishment. The shipping space at major domestic ports continues to be tight, which further helps keep freight rates high.

✅ Practical shipping reference suggestions

1. Freight rates on the U.S. and European lines are at high levels and fluctuate greatly. Shippers with shipping plans are advised to lock in space and sign long-term contracts as soon as possible to avoid the risk of subsequent price increases.
2. The situation of shipping lanes in the Middle East and the Red Sea is not yet completely clear, so you need to be cautious when booking space. You can give priority to the route around the Cape of Good Hope. The voyage is expected to increase by 7-10 days.
3. The peak season surcharge for African routes has been officially implemented. Please calculate the logistics costs in advance and plan the delivery time reasonably before shipping.
4. The freight rates on the India-Pakistan and Southeast Asia routes are divergent, and prices on some routes have fallen. You can compare shipping company quotes from multiple parties and choose cooperation plans flexibly.