Freight Has Soared By 32.4% in A Week. Will The European Line Go Up in November? Don't Worry, Look At This First.

The shipping company strives to protect the European line and ushered in a critical moment.

 

As the European signing season approaches, shipping companies, which have been overwhelmed by low freight rates, have begun to control cabin protection, suspend flights, Skip jump ports, shrink cabins and push up.

 

What is the trend of the freight market after a wave of collective efforts to protect the shipping company?

 

Freight has skyrocketed by 32.4% in a week. Will the European line go up in November?

 

Last Friday, the Shanghai Shipping Exchange released the latest issue, according to the report.

 

Weekly report on China's Export Container Transport Market. The report shows that the composite freight index of Shanghai export containers released by the Shanghai Shipping Exchange on October 27th was 1012.60 points, up 10.3% from the previous period.

 

Among them, the market freight rate (shipping and maritime surcharge) for exports from Shanghai Port to European basic ports is US $769 / TEU (equivalent to about 1538/FEU in terms of large container freight), which is 32.4% higher than that of the previous period.

 

The Mediterranean route, the market situation is basically in sync with the European route, and the spot market booking price has also risen this week. On October 27th, the market freight rate (shipping and maritime surcharge) from Shanghai Port to the basic port of the Mediterranean was US $1221 / TEU (equivalent to about 2442/FEU in large container freight), an increase of 10.1% over the previous period.

 

In the face of the second consecutive rise in the export freight index SCFI of the Shanghai Shipping Exchange, some financial media shouted "the European line will rise in November."

 

Is the situation really like the Shanghai Shipping Exchange Export Freight Index SCFI?

While analyzing and combing the SCFI index, which is based on the reporting of shipping companies, the one shipping team found that the other two major shipping indices in the world issued completely different freight data reports at almost the same time.

 

Drewry: it didn't go up, it fell 2%!

FBX: up only 8%.

 

Shipping team collated and found that on the same day that the Shanghai Shipping Exchange released the freight rate index, the FBX Index was also released at the same time.

 

The FBX Index shows that the market freight rate of China's exports to northern Europe is US $1056 / FEU, up 8% from the previous period.

 

On the day before the release of the Shanghai Shipping Exchange SCFI and FBX Index, that is, October 26, Drewry released the latest issue of the Freight Index (WCI). The Drewry Container Freight Index shows that the market freight rate for Shanghai exports to the port of Rotterdam is US $1004 / FEU, not only not rising, but down 2% from the previous period!

 

At almost the same time, the world's three major container indices-Shanghai Shipping Exchange SCFI, Drewry and FBX Exchange -gave very different statistics for Asian-European routes. One said that the European route soared 32.4% in a week, one said it was up 8%, and the other said it was down 2%.

 

So, in the face of the complicated and confusing market, what is the real situation of the market?

 

There is a shipping company to extend the use to November 18, the trend of freight is doubtful!

 

It is understood that the shipping company Hapag-Lloyd told customers as early as last month that it would raise the Asia-Nordic FAK rate to $1750 per 40 feet from November 1. CMA also announced earlier this month that it would increase the FAK rate for the route to $1800 per 40 feet from November 1.

 

Just a week ago, a British shipper told the Loadstar that all carriers were applying for increases in freight rates for their Chinese exports, saying he was "shocked" by the price increases. In the past week alone, however, he said he was "surprised" by it. "I managed to log on to the websites of several shipping companies and they have now extended the validity of the rates until November 18," he said. "

 

It is understood that the next few weeks will be "success or failure" for Asia-Nordic shipping companies, which must take action to restore spot prices to support the upcoming annual contract negotiations. MSC and Maersk will resume reducing the coverage of "winter routes" from Asia to northern Europe by December to mitigate the impact of falling demand and falling freight rates.

 

Starting from the end of this month, the 2M Alliance's Asia-Nordic Link will be suspended for seven weeks!