Coronavirus & Shipping: Freight Increases

Due to the increased demand caused by the re-opening of the United States under the epidemic situation and the capacity control caused by the suspension of a large number of ships, the spot container freight between Asia and the United States has continued to soar in the past few weeks. The freight rates in the US West and East US routes have both risen to their highest levels since 2021.

The data shows that shipping prices have started to soar since April. According to the weekly report on China's export container shipping market released by the Shanghai Shipping Exchange, the average number of cabins on the Shanghai Port US West and US East routes is at full load, and some flights even appear to be violent. Supported by fundamentals, most airlines have increased their booking prices, and the spot market freight rates have risen. On April 30, the freight rates (sea freight and ocean freight surcharges) of Shanghai exports to the basic port markets of the West and the East of the United States increased by 17.1% and 6.9% respectively from the previous period.

The volume and price in the North American market have risen, and the freight rate has set a record high.

Foreign trade export companies call for the stabilization of container freight rates.

Since the epidemic, some Chinese and foreign shipping companies have drastically reduced the number of export container voyages and dismantled container ships.

Exports have recovered quickly, and export business has grown rapidly. However, shipping companies did not increase their capacity accordingly, but increased their profits by increasing prices substantially.

Even if the booking is successful, there is still the possibility of being dumped.

The Shanghai Shipping Exchange's "May China Export Container Transport Market Analysis Report" forwarded by the Ministry of Transport stated bluntly: The North American market has soaring freight rates.

Although some foreign trade companies use "FOB terms" to charge the customers' freight, the increase in freight will cause customers to reduce orders, postpone shipments, and cancel orders.