Current Status of Shipping

Except for the U.S. route, the cargo volume of other routes has declined

01 Except for the U.S. route, the cargo volume of other routes has declined

Due to the blockage of the container logistics supply chain, the global traffic volume of all routes except the United States has declined.

According to the latest data from Container Trades Statistics (CTS), the global container shipping volume in September dropped by 3% to 14.8 million TEUs. This is the lowest monthly freight volume since February this year and an increase of less than 1% year-on-year in 2020. So far, this year’s shipping volume has reached 134 million TEUs, an increase of 9.6% over the same period in 2020, but only 5.8% higher than in 2019, with a growth rate of less than 3%.

CTS said that in the United States, consumer demand continues to drive the growth of imported containerized goods. However, due to the decline in exports from Asia, the global volume of goods has fallen. Among the global routes, the only growth is the route from Asia to North America. The volume of 2.2 million TEUs on this route in September was the highest monthly volume so far. In September, the volume of the Asia-Europe route dropped by 9% to 1.4 million TEUs, which was a decrease of 5.3% from September 2020. CTS said that demand for the route appears to be shrinking. Although the first and second quarters both increased by double digits compared to the same period in 2020, they fell by 3% in the third quarter.

At the same time, U.S. exports have also declined due to the shortage of container equipment and terminal congestion that have increased the difficulty of export transportation. CTS said that routes from the region to the world have been affected, especially the return transportation of trans-Pacific routes. In September, US export traffic fell by 14% compared with August and 22% compared with the same period in 2020. As the factors that caused congestion in the supply chain have not been eliminated, freight rates continue to rise. The global freight index rose 9 points to 181 points. On the trans-Pacific route, where capacity is the most tight, the index rose 14 points to 267 points. Even in the case of a slowdown in Asia-Europe trade, the index still rose 11 points to 270 points.

02 Route freight rates remain high

Recently, the global new crown epidemic is still in a relatively severe situation. The European region has shown signs of rebound, and future economic recovery still faces greater challenges. Recently, China’s export container transportation market has been basically stable, and the freight rates of ocean routes have been hovering at a high level. On November 5, the Shanghai Shipping Exchange released the Shanghai Export Container Comprehensive Freight Index of 4,535.92 points.

European routes, Mediterranean routes, the new crown epidemic in Europe has recently rebounded, dragging down the pace of economic recovery and showing signs of slowing down. The market transportation demand is in good condition, the supply and demand relationship is slightly tense, and the market freight rate is hovering at a high level.

For North American routes, the recent transportation demand in the United States has continued to remain high during the traditional peak season. The fundamentals of supply and demand are stable, and the average space utilization rate of ships in Shanghai Port is close to the full load level. The freight rates of the Shanghai Port West Coast and East Coast routes continued to fluctuate at a relatively high level. The West Coast routes increased slightly, while the East Coast routes declined slightly.

On the Persian Gulf route, the epidemic situation at the destination is generally stable, the transportation market remains stable, and the fundamentals of supply and demand are good. This week, the average space utilization rate of ships in Shanghai Port remained at a relatively high level, and the spot market booking market declined slightly.

On Australia and New Zealand routes, the demand for living materials has driven transportation demand to remain high, and the fundamentals of supply and demand are stable. The average space utilization rate of ships in Shanghai Port remained at a relatively high level, and the spot market booking prices were hovering at a high level.

On South American routes, the epidemic situation in South America continues to be in a more severe situation, and the epidemic situation in the main destination countries has not been effectively improved. The demand for daily necessities and medical supplies drove the high level of transportation demand, and the relationship between supply and demand was good. The market situation was generally stable this week.

On the Japanese route, the transportation demand remained stable, and the market freight rate was generally improving.

BY PETER