KYD Electronic CO., Ltd

KYD Electronic CO., Ltd

EN / ES / TR
Haberler
Home > Haberler > Şirket Haberleri > Why does the maritime market set off a "surge of price increases" in the off-season?

Contact

KYD Electronic CO., Ltd

Whatsapp//Wechat: 86-13427954596
Facebook:
www.facebook.com/li.karen.184881

Email:
karen@kyd-esd.com
sales@kyd-esd.com
sales001@kyd-esd.com

Skype: karen.tyoled@outlook.com

Why does the maritime market set off a "surge of price increases" in the off-season?

Article source: KYD Electronic CO., Ltd / Author: KYD Electronic CO., Ltd / Publication time: 2024-06-04

According to the convention, the maritime market has obvious off-peak season characteristics, and freight growth is generally accompanied by the shipping season. However, recently, the industry has set off a "tide of price increases" in the off-season, the container index (European line) futures have risen, a number of head shipping companies have issued price hike letters, resulting in a serious lack of port boxes and a backlog of foreign trade goods.

What are the main reasons for this wave of "price increases"? In the face of the phenomenon of "one cabin is difficult to find", how should export enterprises respond? How long do you expect the price increases to continue?


First, tight space. Prices have soared on many shipping routes.

Recently, the consolidated European line futures hit a new high since the listing. In addition, in addition to the price increase of the European line of shipping, the price of the Sino-American route has also risen by nearly 40% in a week. It is understood that a number of head shipping companies have recently issued price hike letters, and the rates of the main routes have been increased. Today, the freight rate of individual routes from Asia to Latin America has skyrocketed from more than $2,000 per 40-foot box to $9,000 to $10,000, and the freight rate of Europe and North America has almost doubled.


Freight rates are soaring, and a large number of small and medium-sized foreign trade enterprises are facing difficult and expensive shipping problems. In order to cope with the pressure, foreign trade enterprises around the country to change the strain, timely adjust the "sea" way, Shenzhen, the export of LED cabinet lamp enterprises, took a diversified mode of transportation. At the same time, many logistics companies also make shipment plans with the shipper early, and take the way of shipping cycle in advance, and strive to reduce the backlog of goods in the warehouse.

Usually, December-January and July-October are the traditional shipping season, and in the current off-season, the shortage of shipping space, soaring freight rates, and off-season are not weak, which have become the key words of the market.


Second, sea freight has increased to 1.5 times. $1,000 every two weeks.

When did the price increase of this sea freight start and to what extent? Tang Qianjia, vice president of Shenzhen Tiantu Tongxun Supply Chain Co., LTD., shared that the price increase began in May, which was almost 1.5 times higher than before. If the current growth rate is followed, the price is expected to be 6,000 dollars /40 foot box in June.


What are the factors behind the price increase? Tang Qianjia believes that there are three reasons: First, the situation in the Red Sea has increased the cost of shipping companies, resulting in a longer shipping cycle and a general reduction of 3-4% of shipping capacity; Second, U.S. imports from Asia increased by 14% in the January-April period, but ship capacity increased by only 6% this year, resulting in a shortage of capacity. Third, after the United States imposed tariffs on China, many enterprises began to ship, as of April this year, many enterprises have reached the lowest inventory, so the enterprise stock is also a big reason.


Third, the explosion caused by dumping cabinets. The increase is expected to continue until September.

In Tang Qianjia's view, this round of price increases is expected to last until July and August, the current freight from Yantian to the West Sea of the United States is about 8,000 US dollars / 40-foot box, the next two or three months will continue to rise. At the same time, the warehouse explosion caused the "dumping", and the "dumping" has led to a delay of two to three weeks, so basically now until the middle of June the ship has been full, at present, the space until August and September must be full.
40 Container.png