Container freight rates continue to rise
Due to sustained and unexpectedly strong demand, container freight rates in major East and West industries resumed their rise in the seasonal off-season, which is usually after the peak. The spot freight rates for ocean freight outside of China this week were approximately higher than those usually at the end of the Golden Week in early October. 9%.
The analysis of logistics investment analyst Jefferies pointed out that the Shanghai Container Freight Index Average Exchange Rate (SCFI) stock price rose 9% to $1,665 per container yesterday morning, "a record high since the new data". Before this week, Last year it was 109% and prices have increased by an average of 34%. So far this year, epfr)-"reflects low retail inventory"-and idle capacity is now only 1.6%, indicating that most of the available container shipping tonnage is currently deployed in the market.
Jefferies pointed out that at the same time, the broader China Container Freight Index (CCFI) composite index rose 3% this week to US$1,111 per TEU, a 33% increase from last year and this week, and an average increase of 11% this year.
Jefferies added: “Since the start of the Golden Week (low season) in early October, the prices of SCFI and CCFI have increased by 15% and 9%, respectively.” He pointed out that further increases in these prices may result in further substantial increases in the profits of container shipping companies. This will trigger a "new round of upward guidance" from analysts on the profitability of shipping companies. Prior to this, the container liner had already upgraded its production capacity at the end of September, reflecting that in recent months, the container liner has been benefiting from "historical integration, reasonable capacity management, and a rapid rebound in demand after the blockade."
Prices stabilized last week
This week’s rise is based on the relatively stable price of last week. It can be seen from Drewry’s World Container Composite Index that this index covers 8 major transactions of east-west transactions. It has increased by 0.5% in the past week, reaching every The 40-foot container was US$2627.94, an increase of 81.5% over the same period in 2019.
The overall increase of 0.5% reflects a small increase in trade prices between Asia and Europe, while a small decrease in trans-Pacific trade prices.
House prices from Shanghai to Rotterdam have risen by 4%, rising by US$87 to reach US$2306/feu. Drewry said that in the same way, house prices from Shanghai to Genoa also rose by 2%, with a 40-foot box at $2,733.
In contrast, the spot price from Shanghai to Los Angeles dropped by 2%, and the price of a 40-foot container dropped from US$84 to US$4,054. Drewry expects house prices to rise slightly this week. This prediction is confirmed by data from SCFI and CCFI, which track bookings in the coming week.
Customer Observation
These figures are also consistent with the observations of freight forwarders. The latest report from the American freight forwarding company Flexport this week also emphasized that the sea freight rate (TPEB) from Asia to North America has increased. The overall freight rate increase (GRI) on November 1 has been implemented initially, indicating that some carriers are adjusting their rates. ". In terms of capacity, Flexport recommends to issue a booking notice 14 days before the CRD. It also emphasizes the "common equipment shortage" in TPEB trade, because "the imbalance of imports and exports persists, leading to long-term search for containers in the origin problem". These problems are expected to continue until the end of this year. "
Asia-Europe demand continues
At the same time, in terms of trade from Asia to Europe (Far East to West), it confirmed that interest rates have risen after the implementation of GRI on November 1, and that further GRI may be implemented on November 15.
In addition, starting from November 1, the port congestion surcharge for the two largest container ports in the UK, Felixstowe and Southampton, will be US$150/TEU. November.
Due to the tight capacity, the company recommends "sending a booking notice at least 21 days before CRD", adding that the market "is expected to be very strong by the end of November."
It also emphasized that "very serious equipment shortages may require replacement of equipment (40'ST, 40'NOR and 20'DC instead of 40'HC)".
Flexport added: “In the UK, severe port congestion in Felixstowe is spreading to other UK ports, such as Southampton. Further delays and port omissions are happening. Carriers are seeking to reduce access due to slow container turnover and transportation restrictions. British goods. They have implemented various restrictions."