Ocean freight rates continued to decline, and many shipping companies suspended sailings on a large scale and reduced their capacity. (Schematic diagram, AFP)
[Financial Channel/Comprehensive Report]Ocean freight rates continued to decline. On October 14, the Shanghai Export Containerized Freight Index (SCFI) had dropped to 1814 points, down nearly 70% from the beginning of the year. The heavy fall in freight rates has endangered the cost price of shipping companies, so they had to suspend shipping, hoping to stop the decline. The data shows that from September to October, the number of ships in the Far East to North America and Europe decreased by 254, of which, the number of ships to the United States and West decreased by 28%, and the number of ships to Northern Europe decreased by 17%.
Caixin.com reported that container freight rates fell abnormally in the peak season in the third quarter, and there was no sign of stopping the decline in October. The freight rate of 40-foot container from Shanghai to West America has fallen the most, from a high of US$8,117 in February this year to US$2,097, a drop of nearly 80%; the standard container from Shanghai to Europe has dropped from a high of US$7,797 in January to US$2,581, a drop of nearly 80%. 70%.
In order to stop the decline, shipping companies began to suspend a large number of sailings to reduce shipping capacity. Data show that in September and October, the routes from the Far East to North America and Europe decreased by 254 ships. Among them, it will decrease by 28% in the western United States, 21% in the eastern United States, 17% in northern Europe, and 18% in the Mediterranean.
Further observation, Mediterranean Shipping canceled the Santana, Puma and Mustang routes, CMA CGM canceled the GGB route, and Matson canceled the CCX route. Boya Shipping has withdrawn all shipping capacity from China to the United States and Europe, and Jinjiang Shipping has also withdrawn all ships from China to the United States.
Industry insiders said that in the traditional peak season in the third quarter of this year, there was not only no peak in demand, but the volume of goods also declined, and the freight rate was avalanche. We needed to protect ourselves and the ships were dissatisfied, so we had to suspend and reduce ships.
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