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Transport demand has yet to recover, route freight rates continue to fall
Visit:727 Date:2021-04-19
This week, as factory production is still recovering after the holiday, the market is in short supply. Airline companies have adopted suspension measures on many routes to control capacity, but the utilization rate of space is still at a low level. Affected by the lack of overall market demand, the spot market booking freight rates continued to fall. On March 9th, Shanghai Shipping Exchange released the Shanghai Export Container Comprehensive Freight Index of 729.49 points, down 5.6% from the previous period.

   Europe and land routes, the market source of goods is affected by the progress of the post-holiday resumption of work, the transportation market is still in the recovery period, but the transportation demand shows signs of gradual recovery. Airlines continue to issue suspension plans on routes to control capacity, and the utilization rate of some flights has recovered, ranging from about 80% to 90%. In terms of prices, most airlines have adopted a strategy of slightly lowering prices, while some airlines have held a wait-and-see attitude. The freight rate has not changed. The spot market booking freight rate has generally fallen slightly, and the decline has been significantly narrower than the previous period. On March 9, the freight rates (sea freight and ocean freight surcharges) for Shanghai exports to the European and Mediterranean basic port markets were US$791/TEU and US$701/TEU, respectively, down 4.4% and 2.8% from the previous period.

   North American routes, the new cargo volume in the post-holiday market is still seriously insufficient. The control of market capacity varies among airlines, and the relationship between supply and demand is still in a weak state. The utilization rate of most flights has increased compared with the previous period, but is still at a relatively low level. The U.S. West is between 70%-90% and the U.S. East route is between 80%-85%. Air carriers generally cut prices to grab cargo in order to compete for market sources, and the spot market booking freight rates have fallen. On March 9th, the freight rates (sea freight and ocean freight surcharges) for Shanghai exports to the basic port markets of the West and the East of the United States were US$1143/FEU and US$2181/FEU, respectively, down 8.7% and 8.2% from the previous period.

   The transportation demand on the Persian Gulf route is still at a relatively weak level. Due to the recent large-scale implementation of capacity control measures by shipping companies, the average space utilization rate of ships in Shanghai Port has recovered. In terms of freight rates, many airlines still adopt the strategy of lowering prices and soliciting cargo. The market freight rates continued the downward trend last week, with a certain degree of decline. On March 9th, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to the basic port of the Persian Gulf was US$427/TEU, a decrease of 8.2% from the previous period.

   Australia and New Zealand routes, the market demand recovery after the holiday is weak and expected. Although the shipping companies have introduced suspension measures to control the capacity, the average space utilization rate of ships in Shanghai Port is between 60-80%, which is still far below the pre-holiday level. Due to the further widening of the demand gap, airlines vigorously cut prices to obtain goods, market competition intensified, and freight rates fell sharply. On March 9, the freight rate (ocean and ocean freight surcharges) for exports from Shanghai to the ANZ basic port market was USD 1,003/TEU, down 11.7% from the previous period.

   South American routes, the market transportation demand has recovered, due to the previous carrier's suspension and other capacity control measures, the utilization rate of each outbound flight has recovered to varying degrees. The space utilization rate of some flights has reached 90%, and the supply and demand are basically oriented to lay the foundation for the freight rate increase plan on March 15, and the spot market freight rate will increase slightly. On March 9th, the freight rate (sea freight and ocean freight surcharges) for exports from Shanghai to the South American basic port market was USD 2391/TEU, an increase of 3.6% from the previous period.

   South Africa route, the market demand for transportation is insufficient after the holiday, the supply and demand situation is at a weak level, and the spot market freight rate drops. On March 9, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to South Africa's basic port market was 1,172 US dollars/TEU, a decrease of 6.3% from the previous period.

   Japan route, the market freight rate dropped slightly. On March 9, the freight index of China's export to Japan route was 701.91 points, a decrease of 1.9% from the previous period.




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