Sea freight prices are skyrocketing! Pay more than 10000 yuan per container! Shipping giants constantly pushing up global shipping costs?

Traditionally, during times of crisis, it has been difficult for shipping companies to maintain freight rates higher than costs, as there will always be a shipping company that breaks industry rules and attempts to gain market share or increase ship loading rates through price reductions. However, this time, such a situation has not been seen. From the perspective of freight rates, one can glimpse a glimpse.

As part of its capacity management measures, shipping companies are continuously increasing freight rates in various regions?

Due to the increased demand brought about by the reopening of the United States during the pandemic and the capacity control caused by a large number of vessel shutdowns, spot container freight rates between Asia and the United States have continued to soar in the past few weeks. The market freight rates for the US West and US East routes have both risen to their highest levels since 2019.

Data shows that shipping prices have been experiencing a surge since June. The weekly report on China's export container transportation market released by the Shanghai Shipping Exchange shows that the average number of cabins on the US West and East routes at Shanghai Port is at a fully loaded level, with some flights even experiencing overbooking. Supported by fundamentals, most airlines have raised their respective booking prices, resulting in an increase in spot market freight rates. On July 31st, the market freight rates (sea freight and sea freight surcharges) for exports from Shanghai to the West and East US ports were 3167 USD/FEU and 3495 USD/FEU, respectively, an increase of 17.1% and 6.9% compared to the previous period.

The June China Export Container Transport Market Analysis Report forwarded by the Ministry of Transport to the Shanghai Shipping Exchange bluntly stated that freight rates in the North American market have surged.

Lege Corporation revealed in a public article that starting from May, Chinese and foreign shipping companies gradually increased the price from the standard $1300 per high container weight container to $3000 from Ningbo to the west coast of the United States, and the price from Ningbo to the east coast of the United States from the standard $3000 to $4850. This price has been maintained since June. The latest notice from the shipping company is that prices will be further increased in August, and booking needs to be made more than 20 days in advance. Even if the booking is successful, there is still a possibility of being abandoned.


Lego Group stated that under its cross-border e-commerce CIF terms, hundreds of containers are produced per month, and the price increase has resulted in an additional payment of over 10000 yuan per container. In the company's view, although some foreign trade enterprises implement FOB terms where customers pay for shipping fees, the increase in shipping costs will lead to customers reducing orders, delaying shipments, and canceling orders.

As part of its capacity management measures, shipping companies are continuously increasing freight rates in various regions?

In fact, the impact of the epidemic has made life difficult for shipping companies, and the ongoing overseas epidemic has also brought great challenges to shipping companies. According to research by well-known shipping consulting firm Alphaliner, the vast majority of top ranked container shipping companies have reduced their fleet numbers and withdrawn their ships from the market in the first half of this year.

Overall, the trend of container shipping prices is constrained by various factors. In addition to macroeconomic factors such as global economic recovery and pandemic recovery, the key is for airlines to grasp their control over transportation capacity and whether they can match changes in demand.