September is the peak season of shipment.

September is the peak season of shipment. In order to meet the demand in the peak season, shipping companies have increased their capacity one after another, but there is still no improvement under the good market performance. The freight rates of most routes continue to rise, and the comprehensive index is steadily rising. At the same time, the shortage of containers is getting worse and worse.

Mediterranean route
At present, the economic operation in Europe is generally stable, the market volume is steadily rising, and most shipping spaces are still relatively tight. Last week, the average utilization rate of shipping space in Shanghai Port was over 95%, and most of the flights were fully loaded. The spot market freight rate rose slightly.

North American route

Up to now, the number of confirmed cases of COVID-19 epidemic in the United States has reached more than 6.3 million, and the number of new cases in a single day has dropped slightly recently, but the total number is still the highest in the world. The federal government still spares no effort to promote the economy, and the market is in the peak season of traditional transportation, with high transportation demand. The scale of shipping capacity has not been greatly improved, and the shortage of shipping space has not been alleviated. Last week, the average utilization rate of ships on the American-West and American-East routes of Shanghai Port was close to full capacity, and there was still a cabin explosion in the market. The booking price in the spot market rose again. On September 4th, the freight rates (shipping and shipping surcharges) of Shanghai exported to America, West and East base port markets were USD 3,758 /FEU and USD 4,538 /FEU respectively, up 3.3% and 7.9% respectively compared with the previous period. On August 28th, the freight rates (shipping and shipping surcharges) of Shanghai exported to American West and American East base port markets were USD 3,639 /FEU and USD 4,207 /FEU respectively.

Persian Gulf route

The operation of the destination market is generally stable, with a slight increase in the volume of goods. Some airlines were suspended, and the supply and demand of routes were basically balanced. This week, the utilization rate of shipping space in Shanghai Port was over 90%, and some flights were fully loaded. Some airlines pushed up freight rates at the beginning of the month, and freight rates in the spot market rose. On September 4th, the freight rate (shipping and shipping surcharge) from Shanghai to base port market in Persian Gulf was US$ 909 /TEU, up 8.6% from the previous period. On August 28th, the freight rate (shipping and shipping surcharge) from Shanghai to base port market in Persian Gulf was USD 837 /TEU.
Last week’s data from Ningbo Export Container Freight Index (NCFI) showed that the cargo volume in the Middle East route market gradually recovered, and liner companies continued to push up freight rates while maintaining capacity scale restrictions. The Middle East route index was 963.8 points, up 19.5% from the previous period.

Australia-New Zealand route
The transportation demand is stable and normal, and the relationship between transportation supply and demand remains good. Last week, the average utilization rate of ships in Shanghai Port remained above 95%. Most of the market quotations of airlines were the same as those of the previous period, and some of them slightly increased their freight rates, while the spot market freight rates rose slightly. On September 4th, the freight rate (shipping and shipping surcharge) from Shanghai to Australia, New Zealand and base port market was US$ 1,250 /TEU, up 3.1% from the previous period. Since the beginning of September, the booking price of flights has risen by a large margin, and the booking price in the market has continued to rise, reaching a new high since March 2018. On August 28th, the freight rate (shipping and shipping surcharge) from Shanghai to Australia, New Zealand and base port market was USD 1213 /TEU.

South American route

Under the epidemic situation, South American countries have strong import demand for various materials, while transportation demand remains at a high level. Last week, the loading rate of ships in Shanghai Port was mostly at full load level, and the market space was relatively tight. Affected by this, some airlines pushed up freight rates again, and the spot booking price increased. On September 4th, the freight rate (shipping and shipping surcharge) from Shanghai to South America and base port market was USD 2,223 /TEU, up 18.4% from the previous period. On August 28th, the freight rate (shipping and shipping surcharge) of Shanghai exported to South America and base port market was 1878 USD /TEU, and the market freight rate has been rising for seven consecutive weeks.

Written : Eric.