Shipping prices skyrocketed! The big sale has to change the price
Since April this year, shipping prices have ushered in a contrarian rise, such a scenario appears in the traditional off-season, really surprising.
It is worth noting that about to enter July, shipping prices still maintain a soaring posture. Maersk, CMA, Hapag-Lloyd and other head shipping companies have successively issued the latest season surcharge and price hike notices, and shipping companies have issued tariff adjustment notices from July 1, passing on the tension of the shipping market.
The shortage of shipping capacity, container shortage and some routes "one class difficult to find" and other circumstances superimposed, a number of industry insiders said that shipping prices will remain at a high level in the short term, can only adjust the business strategy in time, many sellers have made up their minds to choose price increases.
Sea freight prices continue to soar
According to the weekly report on China's export container transportation market released by the Shanghai Shipping Exchange, this week, China's export container transportation market continues to show a steady and good trend, transportation demand remains high, and most of the ocean route market freight rates are rising, driving the composite index to continue to rise. On June 14, the Shanghai export container comprehensive freight index released by the Shanghai Shipping Exchange was 3379.22 points, up 6.1% from the previous period.
On June 14, the freight rate (sea freight and sea surcharge) for exports from Shanghai port to the European basic port market was 4179 US dollars /TEU, an increase of 5.8% over the previous period. On the Mediterranean route, the market trend continues to synchronize with the European route, and the price of spot booking continues to rise. The freight rate (sea freight and sea surcharge) for exports from Shanghai port to the Mediterranean basic port market was US $4,848 /TEU, up 1.3% from the previous period. The freight rate (sea freight and sea surcharge) for exports from Shanghai port to the basic port market of the West and East of the United States was $6,906 /FEU and $7,993 /FEU, respectively, up 11.2% and 7.3% from the previous period.
Maersk, CMA, Hapag-Lloyd and other head shipping companies have successively issued the latest season surcharge and price increase notices, and the shipping company has issued a notice of tariff adjustment from July 1. Cma CGM has announced on its website that a high season surcharge of US $2,000 per container for all cargoes from Asia to Puerto Rico and the US Virgin Islands will be imposed from July 3, 2024 (loading date) until further notice.
In December last year, the Red Sea crisis broke out, a number of shipping giants announced the temporary suspension of all routes through the Red Sea, choosing to go around the Cape of Good Hope, and charging the Red Sea surcharge, sea freight prices rose. The surge in shipping prices is closely related to the Red Sea crisis, and the most important thing is that overseas demand is increasing while the supply of shipping capacity is decreasing.
Technology freight forwarding company Flexport believes that due to the continuous bypass of the Cape of Good Hope, the ship schedule is extended, Christmas shipments may be brought forward to July to start planning. At present, many foreign trade companies are still considering whether to ship in advance, and some companies have already begun shipping Christmas season goods.
"Now the freight forwarder's offer is also uncertain, depending on the shipping company." A freight forwarder in the industry said to Hugo cross-border. "Now the shipping price is one price a week, the most difficult thing is no longer the quotation, and the goods are received but no cargo can be sent out." It's not just one of our freight forwarders. Every freight forwarder is scrambling for space now."
"A box is difficult to find" also makes many foreign trade enterprises and cross-border e-commerce sellers in trouble, many small and medium-sized foreign trade enterprises choose not to ship, some choose the Central European train or other relatively cheap mode of transport, cross-border e-commerce sellers have also begun to plan countermeasures.
sales have been affected by the profit decline
"The situation of high shipping prices may continue until the end of the year, the most injured is small and medium-sized foreign trade enterprises, prices are very early to negotiate with customers, shipping prices are so high, customers also ask for lower prices to share the freight pressure, forced by this can only choose to suspend shipments." A small and medium-sized foreign trade export enterprise said.
There are some foreign trade enterprises do need to ship, then choose a diversified layout. "Affected by sea freight prices, the price of China-Europe freight trains has also risen, and the location is relatively short, and we have begun to consider stocking more goods in overseas warehouses to reduce certain transportation costs."
Cross-border e-commerce sellers in the face of this wave of maritime price increases, but also began to plan layout. Previously, home sales to Europe technology released the first quarter of 2024 financial results show that the company's net interest rate declined slightly in the first quarter of 2024.
In the investor relations activity, the company said that there are three main reasons for the slight decline in the company's net interest rate: one is due to the increase in advertising investment in the first quarter, the second is due to the increase in sea freight and freight price caused by the Red Sea incident, and the third is caused by the increase in financial expenses caused by exchange losses.
Europe Technology said that although the impact of the Red Sea incident, sea freight prices have a certain volatility in the short term, but in the long run it is difficult to return to the high price range of 2022, which is conducive to maintaining the stability of the first transportation cost. As one of the leading cross-border e-commerce enterprises in furniture and home furnaces, the company has obvious scale advantages in sea freight negotiations and can form an active bargaining advantage.
Moreover, the company is a 2C business model, which can manage the price of products. Product sales prices are affected by market environment, operating costs and product characteristics and other factors, the company will adjust product prices according to market conditions and product costs and other comprehensive assessment, and continue to pay attention to the company's efficiency and cost reduction measures.
Seller Lao Wu analysis, under the interweaving of multiple factors, sea freight continues to rise, freight will still fluctuate at a high level in the short term, but will not continue to increase significantly. But the rally is likely to continue into the third quarter, with rates likely to calm as shipping companies inject new capacity and rush shipments end.
"One can be more multiple, or overseas warehouse stock, now the speed is too fast, now more shipments may be able to save some." And let's see if we can get a deal. We are also starting to think about raising the price of our products to cover a wave of costs." Seller Lao Wu said.
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