The European route will be subject to a peak season surcharge from September 1. The 20'DC exported from Shanghai to the European basic port in the latest week also increased by 9.8% from last week, and the price reached US$1,029.
According to analysis, there are four major factors that have caused this wave of sea freight rates to rise:
1. Due to the impact of the COVID-19, the shipping market is too sluggish, causing VOCCs to shrink space, which hit a record high.
2. The market demand surged after the unblocking in May.
3. Due to the rapid increase in demand, even if ships continue to invest, the container dispatch speed cannot keep up in time.
4. International oil prices are rising.
According to the analysis and prediction of a senior manager of a major VOCC in Taiwan, this wave of rising ocean freight rates should continue until November this year before a slight drop.
In response to the current skyrocketing in freight rates and tight space, SEAMAX makes the following suggestions for exporters' reference:
1. Evaluate your purchase orders and delivery date, and do booking 2-3 weeks in advance.
2. Concentrate your all booking to a same shipping company in recently, and then bargain a more favorable freight rate with them.
3. Convert the trade term from CIF to FOB.
