Shipping company: I am also surprised that the freight price has increased so much!
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The sudden increase in container freight rates in recent weeks has surprised Hapag-Lloyd CEO Rolf Habben Jansen.
He told shipping media ShippingWatch: "To be honest, I am also surprised by the increase in freight rates. We have seen very strong demand in the past few weeks, but what the reason is, we can only guess."
Rolf Habben Jansen could not give a decisive reason for the sudden surge in demand and freight rates. He also doesn't see anything unusual about the demand, saying he shouldn't get too excited about the strong demand seen over the past few weeks.The demand trend this year has been normal, now we have to see how it develops in the next few weeks.
However, Rolf Habben Jansen does not believe that the Red Sea crisis is the main reason for the sudden rise in container freight rates, because freight rates increased initially after the Red Sea crisis, but then normalized. The surge in demand over the past few weeks will certainly drive spot rates higher. He believes the increase in demand stems from shipper jitters.
Some analysts pointed out that corporate nervousness may be part of the reason for the sudden surge in freight rates.
Serious shipping delays occurred as Houthi rebels attacked ships in the Red Sea, forcing shipping companies to make detours. This may promptMore shippers are ordering goods now for the Christmas shopping season, resulting in an unexpected surge in demand for shipping.
Due to the tight global container shipping capacity, international spot shipping prices have surged recently, rising by approximately 30% in the past few weeks.
Specifically, data from Xeneta, a shipping price comparison platform, shows that tensions in the Red Sea triggered a wave of sharp increases in shipping costs at the beginning of this year, which have since declined, but there were two more waves of increases in late April and mid-May this year. Compared with the end of April, fromShipping from East Asia to the East and West Coast of the United Statesport40ft containerSpot freight rates have increased by an average of ,500.
Xeneta said the rise in fees indicates that the spot shipping market is picking up, and it is seeing a trend in the spread between spot and long-term freight being widened.
By comparison, it can be found that the fluctuation range of long-term contract freight is relatively small, and there is no surge in spot freight volume. The current price difference between the two has reached more than 2,500 US dollars.
When the freight gap is large, shipping companies are more likely to prioritize allocating shipping capacity to spot cargo in the hope of earning higher revenue. This will also lead to delays in the transportation of long-term goods.
Regarding the latest wave of spot shipping price increases, the main reason is the shortage of containers. As shipping companies avoid the Red Sea and go around Africa's Cape of Good Hope, containers spend longer at sea and cannot be reloaded in time.
In addition, Drewry data shows that in the five weeks from May 13 to June 16, 2024, the main east-west main routes - trans-Pacific, trans-Atlantic and Asia-North Europe and Mediterranean routes - have announced 44 The total number of canceled voyages accounts for 7% of the planned 653 voyages, which may further push up freight rates.
The improvement in shipping demand has also contributed to price increases, which is mainly reflected in two aspects:
First, macroeconomic data in Europe and the United States have improved marginally. According to the previously announced ZEW Economic Sentiment Index for the Eurozone in April, it recorded 43.9, a record high in nearly 26 months. The United States has also ended its destocking cycle that lasted for one and a half years and began to restock;
Second, due to the extended transportation time caused by the detour and the expectation of rising freight rates during the peak season, cargo owners have prepared goods in advance. It is reported that the detour of the route from the Far East to Europe will drive global box-mile transportation demand to increase by 5.27%.
At the same time, there are signs that the peak season is already several months earlier than usual.
The peak shipping season is usually from June to September each year, but some analysts said that some potential disruptions have caused retailers to move early this year, and some companies are worried about the possibility of contracts at U.S. East Coast and Gulf of Mexico ports this fall. Situations in which workers strike after expiry.
U.S. companies order holiday and resale products in advance to ensure seasonal goods arrive early or on time.
In addition, extreme weather causes extended sailing times, and in order to reach the final destination on time, some ships may choose to skip some intermediate ports, resulting in empty containers being unable to return to the export port in time, further affecting the supply of containers.
It is worth noting that the two major shipping giants Maersk and Hapag-Lloyd also raised their performance guidance for this year this month. In addition, the CEO of the U.S. branch of DHL Express said in an interview with CNBC that the transportation industry may face increased demand and insufficient supply this year. challenge, and said it had started early to prepare for the peak season.
Ocean freight comparison platform Xeneta warned that freight rates could rise further in early June and that spot shipping prices from the Far East to the U.S. West Coast could exceed levels seen at the height of the Red Sea crisis earlier this year. The final increase in shipping costs may also affect consumer prices.
