FREIGHT COST DECREASE!!!
The volume of export and import containers dropped sharply due to many objective reasons such as falling commodity prices, low demand, and after the Covid 19 pandemic, the economic situation was more difficult, so freight rates tend to decrease and fluctuate so much.
Shipping lines offer discounts for all routes starting from September, the situation of difficulty in booking ships and scarcity of empty containers has been reduced, not as stressful as before.
Below is the data and information for your reference about the current shipping situation:
Freight rates continued to decline, and carriers continued to cancell nearly 100 voyages!
AGRINUTS VIETNAM TRADING CO.,LTD
Container freight rate drops for nine consecutive times
The latest Shanghai Container Freight Index (SCFI) was 3562.67 points, down 177.05 points
from last week, the lowest since June last year, with a weekly drop of 4.73%, which has been falling
for the ninth consecutive weeks.
The four major long-distance routes fell simultaneously, and the decline of the East and West Coast
of US Route increased.
According to the research report released by Huatai Securities, container transportation,
as an important carrier of Global trade, is directly affected by the consumption demand of
European and American markets.
Looking forward to the second half of the year and 2023, the freight rate will maintain a
downward trend, but will still be higher than the pre covid-19 level.
AGRINUTS VIETNAM TRADING CO.,LTD
The freight rates of the main routes in the latest all fell:
n Far East to West Coast of US, fell by $346 to $6153 / FEU, down 5.32%;
n Far East to the East Coast of US, fell by $224 to $9106 / FEU, down 2.40%;
n Freight rate from Far East to Europe was $4971 / TEU, down $195 or 3.77% from last week;
n Freight rate from Far East to the Mediterranean was $5633 / TEU, down $219 or 3.74% from last week.
n For Southeast Asia routes, it was $775 / TEU, down $71 or 8.39% from last week.
n For the Persian Gulf route, the freight rate was $2372 / TEU, down 8.8% from the previous period.
n Australia – New Zealand route continued to fall, with the freight rate of $2902 / TEU,
down 2.9% from the previous period.
n South American route has dropped for three consecutive weeks.
The freight rate is $9214 / TEU, down $317 from last week, down 3.33% from the previous period.
Drewry World Container Freight Index (WCI):
The latest composite index was $5956 / FEU, down 3% this week and fall for the 24th consecutive week.
§ Among them, the spot freight rate from Shanghai to Genoa decreased by 10% compared with the previous week,
namely USD 960, to $8779 / FEU;
§ The spot freight rate from Shanghai to Los Angeles decreased by 2% to $6834 / FEU;
§ From Shanghai to New York, it remained basically the same, as $9749 / FEU;
§ From Shanghai to Rotterdam, it dropped 1% to $8833 / FEU.
§
AGRINUTS VIETNAM TRADING CO.,LTD
Hapag-Lloyd, the world’s fifth largest liner company, recently announced strong performance
in the first half of 2022 and predicted the container shipping prospects: demand is slowing,
spot freight rates will continue to fall, and the current severe congestion will be eased.
But demand did not collapse.
In addition, the congested ports may worsen due to the recent frequent strikes,
which may become a major supporting factor for the high freight rates of some routes or the temporary sharp rise.
Large scale suspension of carriers
According to Drewry’s latest data, as for the suspension arrangements in the next five weeks (33 weeks to 37 weeks),
the three major alliances cancelled 80% of the flights, and a total of 81 routes were cancelled.
Among them, THE Alliance announced the cancellation of 33.5 times, the 2M Alliance announced
the cancellation of 25 times, and the OA Alliance announced the cancellation of 22.5 times.
AGRINUTS VIETNAM TRADING CO.,LTD
Among the 756 scheduled voyages on major routes such as Trans-Pacific, Trans-Atlantic,
Asia- Northern Europe and Asia – Mediterranean, 98 voyages were cancelled from the 33rd week (8.15-21)
to the 37th week (9.12-18), with a cancellation rate of 13%.
According to Drewry’s current data, during this period, 64% of air voyage will occur in the
Trans-Pacific eastward trade route.
