Rate increase of 1000 USD /FEU! Shipping Department: August 15th
According to industry sources, mainline operators are hoping for an increase in freight rates from Asia to the US West Coast in mid-August to reverse recent prices.
Maersk has recently adjusted the price of wk33 and lowered the freight rate of large container to 7400 US dollars to cope with the flat demand for large container booking of 7600 US dollars from Shanghai to Ouji Port in the early stage.
Since then, as bookings have picked up, the price has steadily recovered to about $7,800.
MSC followed suit and announced that it would lower the price of large cabinets to $8,240 from August 8.
As far as the current situation is concerned, the price adjustment of the ship to the European line has accelerated but the decline is relatively slow.
But the American line is different.
According to foreign media reports, major route operators plan to adjust freight rates between Asia and the West Coast of the United States in mid-August in response to recent market volatility and seek to offset the impact of previous adjustments.
It is reported that since August 15, a number of shipping companies have announced that they will increase the freight rate of $1,000 per 40-foot container, aiming to curb the trend of continuous decline in freight rates on the route in the past three weeks.
According to the Shanghai Container Freight Index, freight rates from Shanghai to the West Coast of the United States fell about 7 percent from the previous week to an average of $6,663 /FEU, but are still up from $1,943 a year ago.
"The resolve of carriers will be sorely tested as recent capacity increases on routes from Asia to the US West and Mexico have tilted the previously tight market balance, with capacity utilisation falling despite strong peak season freight demand," Linerlytica, a shipping consultancy, said in a report.
It is worth noting that the third quarter continues to see strong volume growth as the traditional peak freight season, but the recent launch of new routes, such as SeaLead Shipping's AWC and various temporary USWC routes, have increased capacity on the route by more than 15%.
Linerlytica estimates that the total number of ships currently sailing on the route reaches 306 with a carrying capacity of more than 2.58 million TEUs, an increase of 14% compared to the same period last year.
At the same time, freight rates from Asia to the East Coast of the United States also showed a downward trend, down 2% from the previous week, the average rate remained at $9,557 per 40 feet, while capacity on the route was essentially unchanged from the same period last year at more than 2.75 million TEUs.
As tight capacity made up for lower volumes, rates on Asia-Europe routes remained stable and barely changed at an average of $4,991 per 40 feet. This stabilization was mainly due to the fact that tight capacity made up for the decrease in freight volume.
Linerlytica noted that while utilisation rates on the [Asia to Northern Europe] route have fallen from their peak in May-June, capacity in the market remains tight, with adverse weather conditions and congestion leading to a high number of vessels on the Northern Europe and Mediterranean routes and a decline in shipping schedules.
Some additional loading flights have also been cancelled as a result, such as the French Peak Service, which CMA CGM had planned to launch in September, has been reduced from seven flights to four to cope with seasonal changes in demand.
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