Last Week, September 17-24, China's Freight Index Situation
Last Week, September 17-24, China's Freight Index Situation
The price increase before China's National Day is relatively obvious, and after China's power cuts and production cuts in the next one or two months, the demand will decline, and it is expected that the freight rate will stabilize.
1. What's the reason why ocean freight has soared 10 times?
Reason 1: Global economic recovery
With the gradual recovery of the economy, global demand has become stronger, especially in the shipping industry, which is most closely linked to international trade in goods. With the further opening of various economies and the rebuilding of inventory in all links of the supply chain, the requirements for shipping capacity have become even higher.
Reason 2: There is no alternative
Compared with air transportation, the price of sea transportation is a bit cheaper. Now, due to the epidemic, the cost of air transportation is higher, and there are few flights willing to go abroad. In addition, there are very few trains used to transport overseas trains, and the current capacity is limited, and freight rates have also risen sharply.
Reason 3: The voyage continues to be cancelled
The shipping performance in 2021 continues the situation in 2020. The proportion of ships sailing as planned has decreased, and the average delay time of overdue ships has increased.
As the global economic growth enters the catch-up stage of recovery, the upcoming increase in capacity will put downward pressure on shipping costs, but the freight rate may not return to the level before the epidemic.
2. When will the sea freight rate be lowered in 2021?
Due to further growth in demand, freight rates may reach new highs. It is expected that the ocean freight will not be reduced in the second half of 2021, depending on whether there will be a decrease in 2022.
In general, the skyrocketing ocean freight is caused by the recovery of the global economy and the lack of other transportation alternatives. However, it is estimated that ocean freight in 2021 will be difficult to reduce, depending on whether it is possible next year.
