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Huge increasing of freight

SCFI shows that the basic port freight rates in Europe and the United States increased by 20% in mid-June compared with the beginning of June. We further found that the SCFI composite index also rose from 1,000 points at the end of 2023 to the current 3,400 points. The values ​​displayed by these indices are consistent with This is consistent with the current situation where freight rates continue to rise.
Even though COSCO and SEA LAND launched a total of 11 direct routes to the West Coast of the United States in late June, the price for European and American routes still increased by US$1,000 per 40' container.
The large NVOCC recently pointed out that the strike at the East US port has also caused a sharp increase in ocean freight. Some shipping companies such as HMM, ONE, EMC, MCC, etc. will increase the freight rate on the U.S. route by US$1,200-2,000/40’ in mid-July. 'The cabinet plan.
Last week, due to the beginning of the peak shipping season, shipping costs outside China will continue to rise next week. Some experts speculate that this may be related to the US imposing additional tariffs on some Chinese goods starting from August 1. However, congestion at Asian ports is also the reason for the continued rise in freight rates. Congestion at Asian ports has also caused serious delays in shipping routes, and at the same time, freight rates on Asian routes have increased significantly.
Peter Shander, chief analyst at Xeneta, noted that shippers are rushing to ship cargo for the traditional peak season in the third quarter amid concerns about the ongoing impact of the Red Sea conflict on supply chains. He further said that if the U.S. Eastern and Gulf Coasts face the risk of major disruptions later this year, shippers will accelerate this approach because shippers are eager to ship, which will keep freight rates rising in the second quarter.
Some shipping company executives hold different views on the reasons for the high freight rates. US President Biden will work hard to promote a ceasefire between Israel and Palestine to support his victory in the election. In this expectation, shippers may choose to delay shipments. to avoid the current high shipping prices. At the same time, due to the longer voyages of European routes, the peak transportation season will start earlier and may end earlier than that of US routes. Therefore, it is expected that the rising freight rates will slow down in the third quarter and decline in the fourth quarter.
Shipping companies plan to carry out a new wave of freight rate increases in mid-July. By then, freight rates on the West Coast of the United States are expected to rise to US$7,100-7,400, on the East Coast of the United States to US$8,300-8,400, and on European routes. Spectrum of 7400-7500 USD. In addition, some shipping companies have already planned to increase the price by another US$1,000 per 40' container on the European and American routes on July 1. If it is increased by another US$2,000 in mid-July, the freight rate will exceed the 10,000 USD mark.
Based on SCFI data and various professional analyses, Seamax puts forward the above views on freight rate trends and calls on exporters to respond prudently as soon as possible.