Recently, carriers have continued to cancel vessel from China to Northern Europe and West America to slow down the decline in freight rates. However, despite the substantial increase in the number of canceled voyages, the market is still in a state of oversupply and freight rates continue to decline.
The spot freight rate on the Asia-West America route has plummeted from a high of $20,000/FEU a year ago. Recently, freight forwarders have quoted a freight rate of $1,850 for a 40-foot container from Shenzhen, Shanghai or Ningbo to Los Angeles or Long Beach. Please notes the valid until November.
The analysis report that according to the latest data of various freight rate indexes, the freight rate of the US-Western route still maintains a downward trend, and the market continues to weaken, which means that the freight rate of this route may drop to the level of about US$1,500 in 2019 in the next few weeks.
The spot freight rate of the Asia-East America route also continued to decline, with a bit decline; the demand side of the Asia-Europe route continued to be weak, and the freight rate still maintained a relatively large decline. In addition, due to the significant reduction of available shipping capacity by shipping companies, the freight rates of the Middle East and Red Sea routes rose sharply compared with the previous week.
Post time: Nov-01-2022