Freight on the Asia-Europe route dropped to triple digits, but the freight on this route increased by 35% in one week!

After the Spring Festival holiday,China Shipping Container LinesThe market continues to be weak, the supply and demand situation is still not ideal, and the freight rates of most ocean-going routes have dropped.Analysts of Shanghai Shipping Exchange believe that with the continuous optimization of epidemic prevention measures in Container, the Chinese shipping market is expected to rebound steadily after the Spring Festival.

On February 3rd, the Shanghai EXP Container Freight Index (SCFI) released by Shanghai Shipping Exchange was 1006.89 points, down 2.2% from a week ago and 80% from 5094.36 points in the same period last year, but still higher than the pre-epidemic level.

It is worth noting that due to the sluggish demand, the freight rate of Asia-Europe routes dropped to triple digits.

On February 3rd, the freight rate (shipping and shipping surcharge) from EXP to base port in Europe was US $961/TEU, down 5.2% from a week ago and US $7,500/TEU from the market high.

The market situation of Mediterranean routes is similar to that of European routes, and the freight rate continues to decline.On February 3, Shanghai Port EXP to the Mediterranean SeaBasic port market freight rate (ocean freight and shipping surcharge)It was $1754/TEU, down 3.4% from a week ago.

Analysts at Shanghai Shipping Exchange said that the PMI of European manufacturing industry is continuously lower than 50 lines, and the economic prospects are not optimistic.In addition, the conflict between Russia and Ukraine continues and geopolitical risks are high, which brings greater uncertainty to the euro zone.After the Spring Festival, the transportation demand in the European market returned to normal, and the freight rate continued to fall.

Trans-Pacific freight rates, another major market, also continue to decline.On February 3rd, the freight rates (ocean freight and shipping surcharge) of Shanghai Port from EXP to base port in the United States and East America were USD 1,363/FEU and USD 2,706/FEU, respectively, down 2.9% and 2.8% year-on-year from a week ago.

Recently, in order to curb the persistently high inflation, the Federal Reserve continued to implement interest rate hikes.In the face of further tightening monetary policy, the future economic situation of the United States is not optimistic.

The only bright spot in the market came from South American routes, with freight rates rising by more than 35% in one week.

After the Spring Festival, the demand in South America increased and the relationship between supply and demand improved.After the holiday, some shipping companies pushed up freight rates, and the booking price in the spot market rebounded sharply.On February 3, Shanghai Port EXP to South American base port MarketFreight rate (ocean freight and shipping surcharge)It was $1,441/TEU, up 35.3% from a week ago.

In addition, the World Container Freight Index (WCI) released by Drury also shows a similar trend.Drury expects freight rates to continue to fall slightly in the coming weeks.

The latest data on February 2 showed that the WCI was $2,034/FEU, down 1% from a week ago.This is 78pc lower than the same period last year and 80pc lower than the peak in September 2021, but still 43pc higher than the average freight rate in 2019.

In terms of routes, the freight rate from Shanghai to Genoa dropped to 2,727 US dollars/FEU, down 2% from a week ago;The freight rate from Shanghai to Rotterdam fell to US $1,732/FEU, down 1% from a week ago;The freight rate from Shanghai to Los Angeles dropped to US $2,056/FEU, down 1% from a week ago.

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