It is reported that the sea freight rates which have risen for 15 months, have dropped sharply in the past one week. Some shipping companies said that the sea freight rates from Ningbo port or Shanghai port to the US west coast dropped to the rates before three-month in the past three days. Why did the soaring sea freight rates suddenly decrease? What happened in the supply chain?
The sea freight rate of US route plummeted
On September 30, the data from the Shanghai Shipping Exchange showed that the latest China Export Container Freight Index (CCFI) dropped 0.5% month-on-month to 3,220.55 points, from 3,235.26 points on September 24 of the previous period.
Prior to this, the sea freight has risen continuously for more than a year from June last year, and reached its peak in September this year. However, not all of freight rates are falling.
According to the Shanghai Shipping Exchange, there are currently 12 major export routes in China. Compared with the prior period, the freight rates of 5 routes decreased.
The rates of Southeast Asia route dropped 4.0%, the US West route dropped 2.4%, the US East route dropped 0.9%, and the European route dropped 0.6%.
However, the freight rates of other routes are still rising. The South Korean route and the Australia-New Zealand route surged by 8.5% and 8.1% and the Japanese route increased by 2.7%.
The changes of sea freight rates and related industrial chains have drawn the global regulators organization attention.
On September 8, the official website of the US Federal Maritime Commission (FMC) announced that China Ministry of Transportation, the US Maritime Commission and the European Union held the Global Freight Regulatory Summit.
In this regard, French CMA CGM, MAERSK, Hapag-Lloyd, Ocean Network Express and the other global leading shipping companies announced that they would suspend the increase of spot freight rates, but they did not indicate that they would reduce sea freight rates. So, why did the rising of sea freight suddenly drop?
According to the analysis of our company (SHANVIM), in view of the reasons for the drop in sea freight rate, Industrial production capacity has been controlled from August, and especially in late September. Implementation of power rationing under the “dual control of energy consumption” in many cities in China has resulted in the decline of production capacity and the decline of transportation demand. Before then, due to the strong demand for overseas marketing, the export orders surged, and the congestion of destination ports, a large number of export goods were piled up in stock. Under control production capacity resources will be saved and avoided waste.
The decline in sea freight is undoubtedly a good thing for our customers. Our customers will be able to save transportation costs and shorten period. SHANVIM will also further improve the quality of our products and provide our customers with higher quality, more wear-resistant and more stable products. The spare wear parts we produce are: Jaw crusher parts: high manganese steel JAW PLATE, check plate, TOGGLE PLATE, movable jaw PITMAN, eccentric shaft ECCENTRIC SHAFTS-ALLOY STEEL, etc., cone crusher parts: High manganese steel MANTLE, BOWL LINER, impact crusher parts: BLOW BARS, CERAMIC BLOW BARS, other wear-resistant parts: CHOCKY BARS, HAMMER.
Post time: Oct-13-2021