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The freight rate has been increased by 1,000 US dollars/FEU!
Aug 05, 2024|
View:104According to industry sources, trunk line operators hope that freight rates from Asia to the West Coast of the United States will increase in mid-August to reverse the recent market.
Maersk has recently adjusted the price of WK33. and the large container freight rate has been lowered to 7.400 US dollars, in order to cope with the flat demand for 7.600 US dollars in large container bookings from Shanghai to Ouji Port in the early stage.
Since then, with the rebound in bookings, the price has steadily recovered to about $7.800.
MSC followed suit and announced that it would lower the price of the large cabinet to $8.240 from August 8.
As far as the current situation is concerned, the pace of price adjustment of the European line by shipping companies has accelerated, but the decline is relatively slow.
However, the American line is different.
According to foreign media reports, major route operators plan to adjust freight rates from Asia to the West Coast of the United States in mid-August to cope with recent market volatility and seek to offset the impact of previous adjustments.
It is reported that since August 15. a number of shipping companies have announced that they will increase the freight rate by $1.000 per 40-foot container, aiming to curb the continuous decline in freight rates on the route in the past three weeks.
According to the Shanghai Container Freight Index, the freight rate from Shanghai to the West Coast of United States fell about 7% from the previous week, averaging $6.663/FEU, but still higher than $1.943 a year ago.
"Carriers' resolve will be severely tested, as recent capacity increases on the Asia to United States West Corridor and Mexico routes have skewed the previously tight market supply-demand balance, with capacity utilization declining despite strong peak season demand," shipping consultancy Linerlytica noted in the report.
Notably, the third quarter continued to grow strongly in the traditional peak season, but the recent launch of new lanes, such as SeaLead Shipping's AWC and various temporary USWC routes, has increased capacity on the route by more than 15%.
Linerlytica estimates that the total number of ships currently operating on the route reaches 306 with a carrying capacity of more than 2.58 million TEUs, an increase of 14% compared to the same period last year.
Meanwhile, rates from Asia to the East Coast of the United States also showed a downward trend, down 2% from the previous week, with an average rate of $9.557 per 40ft, while the route's capacity was basically the same as the same period last year, exceeding 2.75 million TEUs.
As capacity constraints compensated for the reduction, rates on the Asia-Europe trade remained stable and barely changed, averaging $4.991 per 40ft. This stable trend is mainly due to the fact that the tight capacity has compensated for the reduction in cargo volumes.
Linerlytica noted that although vessel utilisation on the (Asia to North Europe) trade has eased from its peak in May-June, capacity remains tight in the market, with adverse weather conditions and congestion leading to heavy crossings and lower schedules on the Nordic and Eastern Mediterranean routes.
As a result, some additional loading flights have also been cancelled, such as CMA CGM's France French Peak Service, which was scheduled to open in September, which was originally scheduled to open in September, but has now been reduced from seven to four, an adjustment to cope with seasonal demand changes.
