Affected by the epidemic, more and more countries have been "closed" for the second time, and the ports of many countries have become full of containers. Lack of containers, exploded cabins, dumped containers, jumping into ports, and frantically rising freight rates, foreign traders are under unprecedented pressure.
The latest data shows that European freight rates have increased by 170% year-on-year, and Mediterranean freight rates have increased by 203% year-on-year. In addition, as the U.S. epidemic becomes more severe and air transportation routes are blocked, shipping prices will continue to rise.
With strong shipping demand and a large shortage of containers, shippers are facing soaring container freight and surcharges, but this is just the beginning. The market may become more chaotic in the next month.
Freight rates continue to soar, 170% in Europe and 203% in the Mediterranean
China's export container shipping market continues to be high. The freight rates of many ocean routes increased to varying degrees, and the composite index continued to rise.
On November 27, the Shanghai Export Container Freight Index released by the Shanghai Shipping Exchange was 2048.27 points, an increase of 5.7% over the previous period. With the increase in freight rates and surcharges, Asia-Europe shippers will face more pain.
Last week, the spot freight rate of containers from Asia to Northern Europe rose by 27%, breaking through US$2,000/TEU. The carrier plans to further increase FAK prices in December. The Northern European part of the Shanghai Container Freight Index (SCFI) rose by US$447 to US$2091 per TEU, up 170% year-on-year.
The price of SCFI at Mediterranean ports also surged 23% to US$2,219 per TEU, a 203% increase from 12 months ago.
For shippers in Asia and Europe, this pain of high freight rates shows no sign of ending. In addition to the large surcharges and premium product fees currently charged to ensure on-board equipment and space, freight rates will be further increased next month. .
On the return route, the situation of European exporters can be said to be worse; it is reported that they cannot secure bookings to Asia at any price before January.
Continuation of the high market, the overall freight rate continues to rise
The continued shortage of containers has further exacerbated the lack of capacity in the market, and the freight rates of most routes have increased, which has pushed up the comprehensive index.
On the European route, the capacity continues to be insufficient, and most of the flight booking rates have risen again.
For North American routes, the market supply-demand relationship remained at a relatively good level, and the spot market freight rates were high and stabilized.
On the Persian Gulf, Australia and New Zealand routes, and South America routes, the demand for transportation is strong, and the market freight rates continue to rise, rising by 8.4%, 0.6% and 2.5% respectively in this period.
European routes have strong transport demand. The repeated epidemics in Europe have stimulated local import demand, and the market volume has remained high. The tightness of airline capacity is still increasing, and the contradiction between supply and demand has not been alleviated. Last week, the average space utilization rate of ships in Shanghai Port basically remained at the full level. Affected by this, most airlines will raise their freight rates at the beginning of next month, and the spot market freight rates will rise sharply.
On North American routes , the new crown epidemic in the United States is still severe. The cumulative number of confirmed cases and the number of new cases in a single day are still top of the list. The severe epidemic hinders the unpacking and transshipment of materials. The market capacity is relatively stable, but the market capacity is limited by the ever-increasing shortage of containers, the upside is limited, and the supply and demand conditions remain unchanged. Last week, the average space utilization rate of ships on the US West and East US routes at Shanghai Port was still close to full capacity. The route freight rate remained stable, and the spot market booking price was basically the same as the previous period.
For the Persian Gulf route , the market performance is generally stable, demand remains stable, market capacity is controlled within a relatively reasonable range, and the relationship between supply and demand remains balanced. Last week, the utilization rate of the shipping space of Shanghai Port remained above 95%, and individual flights were fully loaded. Most commercial airlines maintained their freight rates unchanged, and a few adjusted slightly, and the spot market freight rates rose slightly.
For Australia and New Zealand routes , the destination market is in the peak transportation season, transportation demand is rising steadily, and the relationship between supply and demand remains good. Last week, the average space utilization rate of ships in Shanghai Port remained above 95%, and most flights were fully loaded. Most airlines have maintained their booking prices at the previous period, but some have slightly increased, and the spot market freight rates have increased.
For South American routes , South American countries have insufficient capacity due to the epidemic, relying on imports for a large number of materials, and transportation demand continues to run at a high level. In this period, the average space utilization rate of ships in Shanghai Port was close to the full-load level. Under these fundamentals, most airlines increased their booking prices towards the beginning of the month, and the spot market freight rates increased.
Major shipping companies will issue another notice of price increases in 2021!
▍Maersk charges a peak season surcharge from the Far East to Europe
Maersk announced that it has imposed a new peak season surcharge (PSS) in Europe and East Asia from December to next year.
Suitable for refrigerated goods from the Far East to Northern and Southern European countries. The surcharge will be $1000/20' reefer container, $1500/40' reefer container, and will take effect on December 15, Taiwan PSS will take effect on January 1, 2021.
Far East to Northern Europe
Far East to North and South Europe
The Maersk 2M Alliance partner Mediterranean Shipping Company (MSC) will use the following various (FAK) rates from Europe to Canada and Mexico.
• Carrier Security Check Fee (CSF): US$11 per container
• Emergency Fuel Surcharge (EBS) (when applicable): US$500 per refrigerator, US$100/TEU per dry container
In addition, MSC has made the following rate adjustments from December 1, 2020 until further notice, but not more than December 31, 2020.
▍ CMA CGM
CMA CGM, the world's third largest container shipping company, has started the new year and will introduce the latest FAK rates from Northern Europe to Canada, the east coast of Mexico, the east and west coasts of the United States and the Gulf of Mexico.
• Cargo: dry containers, reefer containers, tank containers and special equipment
• Cargo: dry containers, reefer containers, tank containers and special equipment
• Cargo: all types
• USEC, US Gulf and USWC include New York, Norfolk, Savannah, Charleston, Houston, Miami, New Orleans and Oakland.
From January 1, CMA CGM will also implement the following FAK rates for dry containers, reefer containers, open containers, pallets and shipper-owned containers (SOC).
▍Hapao features GRI rates from East Asia to the United States and Canada
Effective date: January 1, 2021.
This increase applies to all dry containers, reefer containers, non-working reefer containers, tank containers, frame containers and open top containers.
East Asia to North America (United States and Canada):
USD 960 for all 20' container types
USD 1,200 for all 40' container types
East Asia includes countries/regions in Japan, South Korea, China/Taiwan/Hong Kong/Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, the Philippines and Russia’s Pacific Rim provinces.
In addition, Hapag-Lloyd also released new (GRI) rates for all dry containers, reefer containers, non-operating reefer containers, storage tanks, frame containers and open top containers from South Asia and Northeast Asia to Australia , Effective from January 1st.
Southeast Asia to Australia
• US $ 150/20'
• US $ 300/40'
Northeast Asia to Australia
• US $ 300/20'
• US $ 600/40'
Southeast Asia includes Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, while Northeast Asia includes South Korea, China, Hong Kong, Macau, and Taiwan.
According to current market conditions, Hapag-Lloyd will increase the GRI rate for all cargo and all container types from East Asia to the East Coast of South America from December 7, 2020, to USD 550 per container.
Hapag-Lloyd announced the rates for all 20' and 40' (high container) goods in the westbound trade from East Asia (including Japan) to Northern Europe and the Mediterranean. The collection will start on December 15, 2020, and will be collected until further notice. Various cargoes (FAK) subject to marine fuel recovery (MFR):
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