Shipping rates have risen for 11 consecutive weeks!

Freight rates have risen for 11 consecutive weeks! The increase in the European and American routes has narrowed!

According to insiders in the freight forwarding industry, due to the tight space situation on the European and American routes that has continued until July, shipping companies took the opportunity to announce a freight rate increase in mid-June, with an increase of about US$1,000. However, whether this increase can be fully realized still needs to be further observed in the actual market response and supply and demand conditions.

The US line led the rise. The Shanghai Container Export Freight Index SCFI rose 2.85% to 3475.6 points on the 21st, rising for 11 consecutive weeks. Under the high freight rate, the freight rates of the four major European and American routes and Southeast Asian routes still rose, but the increase continued to narrow. It is worth noting that the Mediterranean line rose by 0.14% per week, which was basically the same as the previous period; the European and American routes rose by 3.55% to 3.87% per week, and the freight rates per 40-foot container on the US West and US East routes exceeded the US$7,000 and US$8,000 mark respectively.

Against the backdrop of a surge in global shipping capacity and freight rates, the freight rate trend has attracted much attention from the market. According to Alphaliner statistics, as of the 21st, global shipping capacity has reached a record high of 30,044,051TEU. According to freight forwarding industry insiders, as the tight space situation on the European and American routes has continued until July, shipping companies decided to take the opportunity to raise freight rates by $1,000 in mid-June. However, the actual realization of this increase remains to be seen, and this move also carries the meaning of testing market acceptance and freight rate ceiling.

From the demand side, European and American countries are replenishing their inventories, while the volume of cargo between Asian regions is also increasing. Importers chose to ship in advance due to concerns about possible delivery delays and freight rate increases caused by the "Red Sea Chaos", which supported the current high freight rate level. However, high freight rates have also begun to affect the demand side, and some importers have begun to wait and see the market, especially for low-value goods, reducing or delaying shipments.

The retail data released by the US Department of Commerce in May showed a monthly growth rate of only 0.2%, an annual growth rate of 2%, while the revised April retail data showed a
monthly decrease of 0.2%. This shows that retail sales in April and May fluctuated less, and industry insiders speculated that the current demand growth may mainly reflect the importers'
early shipment behavior in response to potential risks.

The freight forwarding industry generally believes that port congestion is the main factor in the continued rise in freight rates on the European and American routes. Recently, dock workers
 in some European ports have launched warning strikes in succession to demand wage increases or increased allowances, and dock workers in the eastern United States are also worried
about strikes. Whether these strikes will have a further impact on market conditions remains to be seen.

A large freight forwarding company said that although the investment in new routes and overtime ships led to a $1,000 increase in freight rates per large container on the European and
American routes on the 15th of this month, the actual increase in the Mediterranean region was only about 60%, which did not reach the expected level. For the original plan to increase
by $1,000 again on July 1, it is estimated that it will be difficult for the Mediterranean route to achieve it. At the same time, freight rates on the US West Coast have also begun to show signs
of loosening, and may fall back soon after the increase.