extremely low freight rates may be coming to an end as shipping companies take advantage of strict capacity management and launch freight rate recovery plans in their service networks in the coming weeks. In addition, shippers may face fuel surcharge increases as shipping companies raise fuel surcharges to mitigate the impact of rising fuel costs.
ocean carriers are preparing to launch a series of GRIs this spring to boost freight rates ahead of the peak season. Hapag-Lloyd (Hapag-Lloyd) took the lead in raising freight rates from Asia to the United States by a staggering $1000 per 40-foot container from May 1. (Check the article: the latest! HPL Raises US GRI Price by 800-1000 USD! KMTC Resume Lost Cabin Fee! ONE Releases Notice of Booking Specification for Shippers' Self-provided Boxes (SOC Boxes)...)
The German shipping company on March 31 released the increase in freight rates of customer information, given that retailer inventories are still affected by inflation for a long time, the trade route is still in a dangerous state, which surprised the entire industry.
in fact, shipping companies plan to cancel as many as 50 voyages from Asia to the East and West Seas this month to ease weak demand. With spot freight rates for containers from Asia to the US plunging from more than US $20,000 per 40-foot container in mid -2021 to just US $1,000, carriers urgently need to raise spot rates to fuel stalled annual contract negotiations.
But a shipping company contact said: "They won't get anywhere near $1000/FEU, but it's more about setting the tone for pending contract negotiations. Hapag-Lloyd has used these 'shock and awaver' strategies before, and importantly, despite weak market fundamentals, they can allow BCOs to rethink sustainable pricing."
However, whether Hapag-Lloyd or other shipping company counterparts will announce similar GRIs on other routes, including the key Asia-Nordic trade route, remains to be seen.
A recent report from the Loadstar shows that shipping lines have largely succeeded in balancing supply and demand on trans-Pacific and Asia-Europe routes over the past few weeks, with last week's export voyage described as "nearly full". As a result, spot freight rates rose slightly.
A logistics source told Standard & Poor's Global (S & P Global) Platts Container Freight Review (Platts Container Freight Comment): "The current ship space is insufficient; the status quo is that the ship will be fully loaded before the third week of April, so the carrier may try to further increase the April freight rate."
Meanwhile, the Organization of the Petroleum Exporting Countries alliance of oil producing countries on Sunday's surprise decision to cut production after oil prices surged sharply, potentially causing shippers to face a new round of fuel surcharges.
The price of Brent crude oil (Brent Crude) rose by about $10 to $82 per barrel on the 4th, putting pressure on the fuel supply market, which in turn led to the price of compliant low-sulfur fuel from Rotterdam rising by $25 to $595 per ton on the 4th. Fuel prices are likely to continue to move higher in the coming weeks, which will trigger shipping line BAF increases.
, a large freight forwarding company pointed out earlier that other shipping companies including Yangming, Evergreen, Yixing and Meisen have all notified that the freight rate per large box (40-foot container) will rise by 600-1,000 US dollars in April, which is estimated to actually rise by about 300 US dollars. Some freight forwarders pointed out that the weekly cargo volume has increased slightly recently. Under the condition of the shipping company's shift reduction, the shipping space is insufficient. In addition, due to the expiration of the US line at the end of April, the new contract negotiations are currently underway. The shipping company also needs to raise the spot market freight rate to facilitate the long-term cooperative price. However, due to the high increase in capacity this year, the new capacity is estimated to be difficult to digest. The shipping company revealed that the current spot price is about $1050, and the goal is to raise it to more than $1500.
, however, the Federal Reserve continues to raise interest rates, inflation remains high, and the recent outbreak of US banking failures has pushed up economists' forecasts for unemployment and severely hit consumer confidence. U.S. retailers' inventories overall remain high, and destocking remains under pressure. The volume of goods has not increased significantly, and the freight rate is still low. JOC executive editor Mark Szakonyi pointed out last week that the prospects for a rebound in Asian imports in the second half of the year are bleak, and the situation in the third and fourth quarters is still not optimistic.
Source: Ningbo Shipping