European Line Freight Rates Fell; The United States West Only Loaded 80%; Freight Rates Have Reached Their Peak Or Are Gradually Declining.

According to Taiwan media reports: container shipping market on the 15th of this month, Europe and the United States line price increase results unveiled, foreign shipping company executives pointed out that the European line of the original order rose to 5500-6000 U.S. dollars per large box, the actual more than discounts, the Taiwan market price of 5000, 5200 to 5500 are collected; the U.S. West line of the shipping company is very adamant about shipping price increases, but this week the U.S. West line of the ship, Yang Ming Marine, because of the report Less than a week later than the peak season surcharge, the ship is fully loaded, and for the rest of the company, most of the dropped cargo is only about 80%.

This foreign shipping company executive believes that as the Lunar New Year approaches, cargo loads are gradually becoming lighter, the market has reached its peak, and freight rates are slowly coming down. The head of the super-large cargo company says that the rate of increase is too high; shippers can pressure the goods after the Spring Festival, which is now not out, so the cargo load is not as expected, but the U.S. East line of vessels is fewer and is full.

The executives of the listed shipping company's soliciting company pointed out that the European line has not risen enough because one shipping company sent extra ships, but the mainland market is still full.

International shipping consulting firm Linerlytica published a survey report yesterday (16) that pointed out that container shipping companies in the first quarter of 2024 will get a windfall because freight rates have risen far more than the cost of rounding the Cape of Good Hope.

In order to avoid attacks by the Iranian-backed Houthis in the Red Sea, many shipping lines opted to change their routes to bypass the Cape of Good Hope, thereby limiting tonnage and increasing sailing time, putting upward pressure on freight rates.

The increase in freight rates far outweighed the incremental cost of rerouting from Cape Harbor, which is estimated to be only $100 to $150 per case (20-foot container), with the increase coming mainly from fuel expenses and higher vessel and equipment costs, offset by savings in Suez Canal tolls.

Linerlytica estimates that rerouting on the Red Sea route will continue through February as more than 70 vessels detour around the Cape of Good Hope, although the market expects the slow season for the Lunar New Year to cool down soaring freight rates.

Linerlytica's report echoed the views of domestic industry executives interviewed by ETtoday on the 8th of this month, who revealed at that time that in fact, ships on the European route will save money by re-routing around the Cape of Good Hope, as the Suez Canal tolls are extremely high, but due to the longer voyage, it is necessary to send two more ships to maintain the original weekly schedule. However, because of the high rate of increase in freight rates and the removal of additional ships to increase the cost, the shipping company still enjoys a very high profit.