The container throughput of global ports continued to increase in October, with a total volume of 15.2 million TEUs that month. So far in 2020, the container throughput has reached 137.7 million TEUs, which is only 2.7% lower than in 2019.
The off-season is not "light"
The latest data from Container Trades Statistics (CTS) shows that the traditional freight off-season in 2020 will not be "light", and the performance will exceed expectations, and the market demand will continue until the fourth quarter . In October, the trans-Pacific shipping volume dropped by 4% from September to 2 million TEUs, but it was still a quarter higher than the same period in 2019. The demand is so great that although operators have been increasing capacity, there is still a gap.
Demand on the Asia-Europe route has also recovered, although its performance is not as strong as the Pacific route. In October, the shipping volume of the Asia-Europe route was 1.4 million TEUs, an increase of 7% over 2019. However, from the perspective of the whole year, the 13.9 million TEUs so far in 2020 is still 7% lower than 2019.
Equipment gap is nearly 1 million TEU
The Asia-Europe route is currently facing the same problem as the Pacific route, that is, the shortage of container equipment and capacity keeps the freight rate at a high level. Sea-Intelligence analysts said that the problem of container shortages is very difficult. The imbalance of east-west traffic on the Pacific route has made the shortage of equipment worse . The current North American imports account for most of the global increase in shipping containers, while North American exports have Weakening. Under normal circumstances, the imbalance of east-west shipping volume will usually cause a monthly deficit of about 2.5 million TEUs in Asia. This gap is filled by empty containers from other regions . But in October 2020, this number soared to 3.4 million TEUs, which means that the equipment gap has reached nearly 1 million TEUs.
Sea intelligence believes that the lack of empty containers is the primary problem faced by shippers. However, this problem is currently difficult to solve, and there is no way to quickly mobilize 1 million additional empty containers, especially when many ports are currently facing congestion. Analysts predict that this situation will continue until at least early February 2021.
After a further surge last week, the spot freight rate for containers from Asia to Northern Europe is now 130% higher than the beginning of the year, up 200% year-on-year. The Far East-Europe trade route is still under tremendous pressure, and the freight rate will continue to rise further.
In the current peak season, the influx of imported goods from Asia into the United States does not seem to have eased. Los Angeles and Long Beach are still in a state of collapse and paralysis. There are as many as 20 ships lining up near the west coast, waiting for the empty space in LA Long Beach Port to unload.
Australian ports remain congested, with more than 75,000 teu stranded in Sydney.
Freight rates in the Asian intra-route market remained stable, but from the same period last year, freight rates across Southeast Asia have increased by a staggering 390.5%.
Europe-to-land route : The North European spot freight rate of the Shanghai Container Freight Index (SCFI) just released by the Shanghai Shipping Exchange increased by 13.5% to US$2,374 per TEU, and the Mediterranean freight rate increased by US$165 to US$2384, spot The freight rate increased by 7.4%. It is worth noting that the year-on-year growth rate in Northern Europe was 196.8%, and the year-on-year growth rate in the Mediterranean was 209.2%. But in fact, the market freight rate is much higher than this.
A Shanghai-based non-vessel carrier said that several shipping companies are currently offering more than US$6,000/40-foot container to Rotterdam and more than US$8,000/40-foot container to the UK.
A freight forwarder in China stated that the carriers on this route are now purely focused on maximizing freight revenue, regardless of all other agreements. He said: "Shipping companies only give priority to higher-priced spaces-whoever pays more will get the space."
Christoph Baumeister, senior trade manager for Flexport Asia/ISC-Europe, said the situation for Asian shippers was “worse than week after week”. He added: "The Far East-Northern Europe/Southern Europe trade route is still under tremendous pressure, and freight rates will rise further this week."
Moreover, according to data from the freight benchmark company Xeneta, the current average price of short-term market contracts in Asia and Europe of three months or less is 200% higher than a year ago, at $4,831 per 40 feet.
Although Xeneta’s long-term contract freight data showed an increase of 28% to US$1,648 per 40 feet, it pointed out that despite the peak contract season, few deals have been concluded because shippers and carriers think it’s not the time.
In the trans-Pacific region , the spot freight rate remained basically unchanged last week and stabilized at a record level. According to SCFI data, the spot price on the west coast of the United States rose by US$68 to US$3947 per 40 feet, while the port price on the east coast fell by US$8. To $4,700 per 40 feet. The year-on-year growth rates of the West Coast and East Coast of the United States were 161.6% and 78.2%, respectively.
Since mid-September, due to the intervention of Chinese regulatory agencies, the spot market on this route has remained stable, and shipping companies hope to obtain guaranteed income from their premiums.
As the influx of merchandise imports from Asia into the United States during the peak season did not seem to ease, the Port of Los Angeles data confirmed that the port's imports in the 50th and 51st weeks increased by 37% and 54% year-on-year respectively.
The continued growth of imports has put tremendous pressure on the San Pedro Bay ports in Los Angeles and Long Beach. Freightos Chief Marketing Officer Eytan Buchman said: "There are reports that as many as 20 ships are lining up near the west coast, waiting for the unloading of empty spaces in the Port of Long Beach, LA. Retailers are eager to put these goods on the shelves before the holidays."
As for Australia and New Zealand routes , with the gradual improvement of the epidemic situation and the continuous growth of transportation demand during the traditional peak season, the market freight rate has increased. According to the SCFI index, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to the basic port of Australia and New Zealand was US$2490/TEU, up 2.5% from the previous period. But the Australian shipping business is currently in a "state that has never been so bad."
The continued "chaos" in the Australian container supply chain will mean that some retailers' shelves will be empty during Christmas.
The impact of supply chain delays caused by the Maritime Union of Australia (MUA) strike in early October continues. The shipping company stated that the disruption of shipping schedules caused a backlog of "8 to 10 weeks" delays (8 weeks of delay means that retailers will not have inventory "until January of next year"), but the union denies that this is the reason. Rather, it points to the increase in demand during the peak season.
According to the Freight and Trade Alliance (F&TA), trade imbalances, resulting in a large surplus of empty containers and lack of storage areas for storing these containers, are still the main problems hindering the supply chain. F&TA Director Paul Zalai said: “Currently, it is estimated that the imbalance of containers is 75,000 teu, which is stranded in Sydney’s empty container yard and operator’s warehouse. The surplus of empty containers will cause Sydney’s logistics to fall from the current congestion state to an unsolvable situation. deadlock."
The peak season demand has increased the spot freight rate from China to Melbourne to US$2490, compared with US$1648 in mid-October. Paul Zalai believes that the country’s shipping industry has “never seen such a bad situation.” He explained: “Our ports are congested, services are limited, freight prices are at record highs, detention, congestion and terminal access surcharges continue to increase. "At the same time, similar shipping delays have also affected importers in the Tasman region. Due to the chain reaction caused by port congestion in Australia, the Port of Auckland in New Zealand experienced delays this year.
The market freight rates of intra-Asia routes also remained stable last week, but from the same period last year, freight rates across Southeast Asia have increased by an astonishing 390.5%.
Although these are eye-catching figures, it is important not to forget that 65% to 75% of all goods are transported on the basis of contract freight rates rather than spot market freight rates. However, due to the exhaustion of the number of contracts (many contracts are in unexpected periods when consumer demand is out of control) the rest tends to the spot freight market. When contract negotiations restart next year, the strong bull market will also benefit shipping companies.
Andy Lane of CTI Consulting in Singapore commented: “There is still one month before the new Asian-European contract. This is under the background of record-breaking spot freight rates. Prices may rise sharply, which will have a real impact on the market."
Against the backdrop of the global raging COVID-19 pandemic, this year's global container shipping industry seems to be sitting on a magical "seesaw". On one side, there is a shortage of containers and high freight rates, and the other is port congestion . The two issues alternate across oceans and continents, torturing the fragile nerves of cargo owners.
However, although industry analysts sing the recovery of the operating industry, industry insiders are still cautious about the "boom" that occurred during the epidemic, especially after the middle of next year, the market supply and demand trend is still like a fog, and there are still larger ones. Uncertainty.
The problem of shortage of containers has attracted the attention of the Ministry of Commerce. On December 3, the spokesperson of the Ministry of Commerce pointed out that, on the basis of the preliminary work, the Ministry of Commerce will continue to promote the increase of transportation capacity, support the acceleration of container return, improve operation efficiency, support container manufacturers to expand production capacity, and increase The intensity of market supervision, efforts to stabilize market prices, provide strong logistics support for the steady development of foreign trade.
The epidemic caused port failure
The problem of container shortages is happening alternately across the Pacific and the Atlantic this year.
According to Bloomberg data, in the first quarter of this year, European and American ports such as Hamburg in Germany, Rotterdam in the Netherlands, Antwerp in Belgium, and Long Beach and Los Angeles in the United States have all fallen into a state of extreme shortage of containers. The port container holdings have reached a record low, while Chinese ports are stranded in a large number of containers. Waiting for quarantine. In the third quarter, the situation was reversed. The overseas epidemic was severe and the port was understaffed. According to statistics, the Port of Sydney, Australia had piled up at least 50,000 TEUs of containers to be processed. Many ports were charged with congestion charges. Hard to find" status.
Generally speaking, problems such as shortage of containers and port congestion are routine problems in the industry, which are easy to appear in peak seasons, and are also related to port processing efficiency. However, the failure of port operations caused by the epidemic has undoubtedly extended the loading and unloading time of containers.
According to a reporter from the Securities Times, due to the need for epidemic prevention, the Port of Los Angeles has temporarily reduced the number of dockers and port personnel by about one-third, and the loading and unloading of ships has been greatly affected. Due to the continuing effects of shortages of equipment and prolonged loading and unloading time in ports, a large number of imported containers have been backlogged in European and American ports, congested terminals and poor container turnover, which has hindered cargo transportation.
The global container shortage difference can be seen from the Container Availability Index (Container Availability Index) released by the container source traceability platform xChang: In July, the supply of 40-foot containers at the Port of Los Angeles was insufficient; by the end of September, the port’s container availability index had increased by 4 times. Oversupply; since September, Qingdao Port (6.110, -0.02, -0.33%) usable containers have begun to decline, and by October the usable index of 40-foot containers has fallen by half, and 20-foot containers have also been in short supply.
Strong Asian exports become an important driving force for recovery
Looking at the whole year, the geographical imbalance of the shortage of containers is more significant, which is directly related to the timing of the outbreak.
According to data provided by the United Nations Conference on Trade and Development (UNCTAD), in mid-March, the number of global container ship arrivals began to fall below the level of 2019 and did not start to recover until the third week of June. This timetable basically coincides with the World Health Organization’s listing of the new crown pneumonia as a pandemic and the deteriorating epidemic in Europe and the United States. On the other hand, the number of container ship arrivals at Chinese ports has gradually recovered since June, which is also in line with China’s The lock release time corresponds to that.
In terms of absolute volume comparison, most regions started to recover from the third quarter, but globally, the port container ship berthing volume in early August was still 3% lower than the same period last year, and North America and Europe were 16.3% lower than the same period last year. And 13.2%. In contrast, the number of port calls in China (including Hong Kong) has exceeded the level of last year, an increase of 4.1%.
China's shipping import and export took the lead in the recovery. The fundamental factor is that the domestic epidemic prevention and control has achieved major results, and the production side has taken the lead in recovery, effectively making up for the global supply gap caused by the impact of the epidemic, and also supporting the continuous growth of exports.
China Customs statistics show that in the first and second quarters of this year, China’s import and export growth rates were -6.5% and -0.2%, respectively. They were reversed in the third quarter, with a year-on-year growth of 7.5%. The total value of imports and exports reached 8.88 trillion yuan. Stable, the cumulative growth rate turned negative to positive. It is worth noting that due to the changes in lifestyles caused by the epidemic, the export of notebook computers and home appliances has increased; the export of epidemic prevention materials has also risen rapidly. The export of textiles including masks reached 828.78 billion yuan, an increase of 37.5%; medical materials and medicines, The export of medical instruments and equipment increased by 21.8% and 48.2% respectively.
According to information provided by UNCTAD to a reporter from the Securities Times, although China was the first country to be affected by the epidemic, in the first quarter, China’s overseas trade, transportation and exports were not interrupted, so the transportation at Chinese ports remained unobstructed; on the contrary; It was in the second quarter that due to the escalating blockades of various countries, economic activities were restricted, and the transportation of logistics personnel was blocked, leading to a sharp drop in imports from various countries. At this time, the impact on port operations increased significantly. Subsequently, the epidemic situation in Europe and the United States became more and more serious, and the key figures of the centralized transportation industry also bottomed out in the middle of the year. At the end of May, the World Ports Association pointed out that the number of container ships calling at about 45% worldwide dropped by 5% to 25%, and most of the cancelled ships came from the Far East route.
According to data from Alphaliner, an international shipping consulting and analysis agency, the new crown pneumonia epidemic in the first half of the year has reduced the chartering revenue of large container ships by half. Starting in the third quarter, global shipping capacity has recovered, a year-on-year increase of 2.8%, reaching 123 million TEUs, strong exports from Asia Become an important driving force for recovery.
In terms of the capital market, the share prices of listed companies in the A-share centralized transportation industry have also started in June and have risen significantly in the third quarter. CIMC (14.830, 0.20, 1.37%) and COSCO SHIPPING Holdings (9.680, 0.06, 0.62%) The performance of related listed companies also increased substantially in the third quarter.
Strong demand for containers is expected to continue into the first quarter of next year
Returning to the shipping industry itself, many shipping companies around the world took the initiative to suspend shipping under the influence of the epidemic in the first half of this year.
As the world’s top five airlines, Rolf Habben Jansen, CEO of Hapag-Lloyd, pointed out at the third-quarter performance briefing that in April this year, demand suddenly dropped by 20% and lost 200 million U.S. dollars per month, so it must be suspended to reduce 60% of the cost. He pointed out: "The market at this stage is driven by demand, not by inventory replenishment. The entire market is trying to get empty containers back to where they are needed."
In terms of container freight rates, the Shanghai Export Container Freight Index (SCFI) and China Export Container Freight Index (CCFI) released by the Shanghai Shipping Exchange have set new highs. On November 27, CCFI quoted 1198.72 points, an increase of 4.6% over the previous week; SCFI quoted 2048.27 points, an increase of 109.95 points over the previous week. Under the strong demand, the price of offshore export containers also rose sharply. On November 27, the export container price of Southeast Asia routes was quoted at 995.67 points, an increase of nearly 20% over the previous week.
According to the analysis of China Securities Regulatory Commission, the supply side has not launched large-scale capacity at this stage, while the demand side has continued to grow rapidly, which will become the fundamental reason for the increase in freight rates in the transportation industry. Although the epidemic has led to pessimistic global economic expectations, in fact, the European and American manufacturing PMI index is still in the expansion range driven by policy, which provides economic fundamental support for the increase in freight rates.
However, someone from a shipping company pointed out to a reporter from the Securities Times that in the last 10 to 12 years, the shipping industry has not made any money or even recovered the cost of capital; long-term low-price competition is difficult to promote the healthy development of the industry.
So, can the epidemic promote the long-term recovery of the industry? Most people in the industry are cautious about this.
Rolf Habben Jansen pointed out that the current market is very, very strong, "but it is illogical to think that this situation will continue in the next few years." He expects that the situation will change in the next three or four quarters, and the company needs to be prepared to act quickly.
Container shipping companies and leasing companies also told reporters that the outlook is difficult to predict. Although the strong demand for containers is expected to continue into the first quarter of next year, after the middle of next year, there is still greater uncertainty in the market supply and demand trends. If European and American countries are still under lockdown or vaccine research and development and promotion fall short of expectations, and the macro economy falls into a sustained recession, the good growth momentum of the container transportation industry may not be able to maintain.
In the past few months, due to the severe shortage of available empty containers, the global supply chain has been hit, causing exporters to have a headache. However, new research shows that there is an obvious problem in the container supply chain-empty containers stay in warehouses for an average of 45 days, while in China, the average time for each idle container is more than two months.
The research project of German company FraunhoferCML and Container xChange shows that although China and the United States urgently need containers, the average residence time of empty containers in warehouses is 61-66 days, which is much higher than the global average of 45 days.
The east coast of the United States is usually the location of surplus container equipment (the 40DC container availability value was 0.7 last year), but the container availability rate dropped to 0.43, indicating that there are actually fewer containers than needed.
The researchers said that compared with the Middle East (21 days on average) and Europe (23 days on average), the high standard deviations of 85 days in North America and 129 days in Asia indicate that in many cases, containers stay in warehouses longer than average. Much more.
Container xChange is a platform that connects users and suppliers. The platform stated that the availability of containers across China is still at a record low, while the surge in shipping containers from Asia has overwhelmed US ports, and retailers are eager to put their products on the shelves.
Not only is there a serious shortage of 40-foot tall containers (hc) in the shipping market, but there is also a shortage of 40-foot standard containers, and even 20-foot containers are sometimes in short supply.
The container availability rate of 40HCs is only 0.05 CAx (container availability rate) points, compared with 0.63 in the same period last year.
Asia's container manufacturing industry is working overtime to produce, which accounts for 45% of the global container manufacturing market. China International Marine Containers, the world's largest container manufacturer, announced an increase in its orders.
The factory is stepping up container building, and container orders have been scheduled to the first quarter of next year. Even so, the demand for millions of containers has made it impossible for container manufacturing to quench its thirst. The world's three largest container leasing giants have issued a warning that the shortage of containers will continue for four months.
Chinese shippers and freight forwarders all over the world "seeking" empty containers, but where did the empty containers go? The answer is simple, it is blocked in other ports.
While the Asian port and shipping industry is desperately desperate for empty containers, although there is a shortage of shipping capacity, price increases can be used to push shipping companies to cancel suspending, refilling, and increase shipping capacity; however, a large number of containers full of cargo are seriously stranded in European and American ports and warehouses. , Unable to move.
In order to alleviate the serious imbalance in equipment, shipping companies have adopted an active strategy for exports to Europe and the United States, suspending orders, and preferring to use as many empty containers as possible to fill return ships.
In fact, in order to prevent all but the most expensive goods, European exporters to Asia are required to pay more than $5,000 per 40-foot container to ensure shipment in December. A British freight forwarder said that many shipping companies now refuse to accept export orders before mid-January. "Our customers are willing to pay such a high freight, but due to port congestion, we are still working hard to get the boxes away. Some boxes have been on the dock for more than four weeks and still don't know when they will be shipped."
At the same time, the urgently needed empty containers in Asia are scattered in warehouses across Europe, especially in the United Kingdom, where troubled ports have to restrict container delivery to already overcrowded terminals.
The current shortage of containers is a once-in-a-century problem in the history of the global supply chain, and it is basically unsolvable in the short term.
The port is not the boss, the ship is not the boss, and the cargo is the boss. This is a "golden sentence" circulating in the port and shipping industry. However, the freight forwarder who has been busy in the front line of cargo booking may tell you that at this moment of chaos in this industry, the port is not the boss, the ship is not the boss, and the cargo is not the boss. You can't get the empty space if you grab the head. The box is the boss .
In recent weeks, due to a severe shortage of empty containers, some container ships sailing from Asia to Europe cannot even be fully utilized. A shipping source said, “Recently, we have to vacate some spaces because China does not have enough containers to meet freight demand.” Almost all transport companies have reported that they have a serious shortage of 40-foot high containers (hc) and 40 There is also a shortage of standard containers, and even 20-foot containers are sometimes in short supply.
The latest container availability index report from Container xChange shows that the availability of containers in various ports in China is at a record low. From the perspective of the container availability index, the index higher than 0.5 indicates a surplus of empty container inventory, and lower than 0.5 indicates a shortage of empty containers. The current availability of 40-foot containers in China is only 0.05 CAx points, compared with 0.63 points in the same period last year .
Chinese shippers and freight forwarders all over the world "seeking" empty containers, but where did the empty containers go? The answer is simple, it is blocked in other ports.
While the Asian port and shipping industry is desperately desperate for empty containers, warehouses across Europe, especially in the UK, are filled with "immobile" boxes in troubled ports and overcrowded docks.
Affected by the epidemic, shipping companies have used methods such as suspension of voyages and port jumps to control capacity and adjust freight rates, but to a certain extent they also broke the balance of empty and heavy containers between routes. With the gradual recovery of the economy, the trade demand of various countries has rebounded, and the exports of Europe and the United States have grown strongly. However, under the continuous epidemic situation, the various quarantine and epidemic prevention measures added by the port customs will inevitably slow down the circulation of containers. Coupled with the gathering of festivals such as "Black Friday" and "Christmas", the port operation capacity will not be able to keep up with the number of boxes. , The result is that a large number of containers are blocked in the port, empty containers can not go out, heavy containers can not enter. In some British ports, the volume of container transportation in recent months has even been 30% higher than normal, resulting in too many empty containers throughout the UK, and even the alarming phenomenon of containers being piled "at your doorstep".
A British freight forwarder said, "Even if customers are prepared to pay close to crazy freight rates to ensure that the goods are shipped, we are still busy trying to transport the empty containers because the port is already full. Some empty containers on the dock are already After being placed for more than four weeks, we still don’t know when they will be loaded."
In order to ensure the smooth operation of global logistics, liner companies have adopted some unconventional container deployment strategies, such as shortening the free container usage period to stimulate and speed up the circulation of containers on key routes; key routes and long-distance base ports give priority to container use and priority Vacant containers are deployed to countries and regions such as China, Southeast Asia, etc.; the monitoring of container return is slow. For example, some areas in Africa cannot receive goods normally, resulting in whether the container is returned or not. The liner company will comprehensively evaluate and reasonably release the container; some shipping companies even suspend it Made export reservations to Europe and the United States in order to fill as many empty containers as possible back to Asia. However, due to the empty container regulation of shipping companies, the freight rates on the Asia-Europe routes have also been increasing, and the market seems to be in a vicious circle of chaos.
At the same time, a survey conducted by xChange and FraunhoferCML, a German maritime research consultant, showed that despite the large-scale progress in global port handling technology, the time that containers remain empty in ports is still surprisingly long. This report unexpectedly shows that the global container vacancy phenomenon is very serious. The vacant time of each container in the port is 45 days on average, while the vacant time of containers in empty container shortage areas such as China and the United States is longer, 61 days and 61 days respectively. 66 days.
Obviously, the circulation of empty containers is a problem that the entire industry needs to face squarely, but it has been ignored by the industry for a long time. In the sudden crisis of the epidemic, the "old problems" have further deteriorated and gradually developed into today's thorny problems.
It is understood that CIMC, which accounts for 45% of the global container manufacturing market, said that the company is currently stepping up container building and container orders have been scheduled to the first quarter of next year. However, waiting for the new containers to leave the factory, after all, "far water can't save the immediate emergency", and the situation of "a box is hard to find" is expected to continue for some time. In addition to working overtime and deploying empty containers, what else can shipping companies and ports do? The structural empty container circulation problem may be difficult to obtain an optimal solution in a short period of time, but "it is not too late to make up for it". It is time to put more resources and efforts on solving the empty container problem.
As shipping companies continue to detain containers in Nordic ports and charge exporters more than US$5,000 per container to ship a container to Asia, there is increasing pressure for regulatory intervention.
British importers are currently facing major challenges. The shipping division of the Ocean Alliance has decided to transfer the other five ships that arrived in Felixstowe in December to Zeebrugge, Belgium.
According to a consultation conducted by the shipping company to its British customers last Friday , the five ships Cosco Shipping Azalea, Ever Goods, Ever Globe, CSCL Jupiter and CSCL Uranus will no longer call Felixstowe, and will unload the British ships at Belgian ports. Imported products.
In addition, the partners of 2M and THE Alliance are also transferring ships from the congested British port, where the former is loading and unloading British cargo in Bremerhaven.
It is understood that due to the lack of open feeder ships and terminal capacity issues, it is almost impossible for British goods to be transferred before January next year. Some shipping companies are discussing not calling Felixstowe throughout January because they worry that the port will be saturated in a few weeks after Christmas.
However, as the terminals in Antwerp and Rotterdam have also become very congested, the choice of liner companies is becoming increasingly limited. However, a source from a shipping company said: "Our first priority is to reduce imports before shipping our container equipment back to Asia."
British export orders have been suspended by a number of shipping companies, and more and more orders can only be booked at other Nordic ports paying additional fees.
MSC said on Friday that it will significantly increase the FAK fee for a 40-foot container from Antwerp to Shanghai in December by 300% to US$5,000. MSC explained that it is facing very serious operational problems that have seriously affected the reliability and regular supply of inventory.
A source at a rival shipping company said the strategy is to block bookings so that MSC can return its empty containers to Asia more quickly.
He added: "If they can indeed get some reservations at this price, it will be a win-win."
At the same time, the European Shippers Council (ESC) and the European freight forwarders association CLECAT have joined forces to lobby the European Commission to intervene in this crisis.
Denis Choumert, president of ESC, said: "Shipping companies have been taking advantage of the tight capacity to increase revenue far beyond cost, which makes customers unhappy."
"The continuous unreliability of service, coupled with the record profits of the shipping company during the crisis, clearly illustrates a severely disturbed market, and shows that the carrier has substantially increased the spot freight and levied higher than the fixed-term contract price The huge surcharge."
A joint communiqué stated that ocean shipping companies serving Europe benefited from “privileges” that were provided to them by the Union’s Prevention of Immunity Regulations (CBER), which was updated in April.
"Such privileges are now too much because they allow shipping companies to use tools to manipulate the market," adding that the European Commission has not responded to the crisis so far, which is "confusing".
As analysts have always predicted, the spot freight rates on the Asia-Europe container trade routes have risen sharply. Compared with the booming Pan Pacific routes, the carnival comes later.
Stimulated by the surge in consumer demand, the supply of equipment was tight and the supply of equipment was limited. The freight rate announced by the Shanghai Container Freight Index (SCFI) rose by US$447/TEU to US$2091/TEU, a 27% increase in a week. The freight rate of the Asia-Mediterranean route has also risen sharply, rising by US$421 or 23% this week to US$2219 per TEU.
Today, most trade routes have also released data for a week. The freight rate from Asia to West Africa has increased by US$300 to US$4,459 per TEU; while the freight rate from Asia to the east coast of Latin America has soared by US$402 to 4,805 per TEU. Dollar.
At the same time, the freight rate in the Pacific region was flat this week, but still at a historical high.
According to recent data released by shipping reporting company Sea Intelligence, the capacity of trans-Pacific routes will increase by 27.3% year-on-year in December. However, in Asia and Europe, the deployment plans of these shipping companies show that capacity has only increased by 6.7% year-on-year. In recent months, many ships have diverted to more profitable trans-Pacific waters.
Earlier this week, Eytan Buchman of Freightos, an online container ordering platform, commented in a report to customers: “Because carriers prioritize trans-Pacific containers, some of them have shifted their shipping capacity to Asia from Europe. United States."
"The shortage of equipment and port congestion in the United States and the United Kingdom has made shippers miserable. There are reports that bookings have been rejected due to lack of empty containers, containers have been unloaded at other ports, and shippers have delayed bookings." Buchman added.
In recent months, the record freight environment has prompted many governments to intervene. The US Federal Maritime Commission (FMC) has expanded its investigation of liner activities, and India, China and South Korea have also recommended that routes control their sky-high charges.
