Why is the warehouse tight? Why are prices skyrocketing? !
Date：2024-05-09 13:58:00 View：
Big News in May
Freight rates soared, space tight
#Preface#
Recently, the freight forwarding industry has faced unprecedented challenges. According to data from Container xChange, a container leasing and trading platform, China's container prices are experiencing unprecedented huge fluctuations. The fluctuations are so large that some foreign traders even lament that the prices are adjusted almost every 48 hours!!!
01、Container price trend in May
Container xChange's container price sentiment index (xCPSI) reflects the industry's forecast trend for container prices in the coming weeks. After the collapse of the Baltimore Bridge, the xCPSI soared to 61 points, but then fell back to the range of 34-46 points, reflecting the market's stable optimism, indicating that global freight forwarders, container traders and supply chain stakeholders are consistent in their expectations of a steady increase in container prices.
PSS announcements from shipping companies are piling up, and shipping space is so tight that it is sold out in seconds. After successfully booking online, it may be snatched up by others in the blink of an eye; offline booking is even more difficult, which is a headache for freight forwarders.
In such a market environment, freight forwarders are full of confidence when accepting orders, but are often dumbfounded when the bills come out. Some freight forwarders even found that after three containers have completed the journey, the profit is actually negative, reaching an astonishing negative $150. The unstable price makes freight forwarders walk on thin ice, and they need to be cautious every step of the way.
02、Shipping companies announced price increases
Recently, major shipping companies have also issued announcements to increase FAK rates.
CMA CGM announced that from May 15, 2024, the FAK price on the Asia to Northern Europe route will be increased to US$2,700 for a small cabinet and US$5,000 for a large cabinet.
Mediterranean Shipping Company also announced that it will impose new FAK rates from May 1, 2024.
Hapag-Lloyd has significantly increased the FAK rates between the Far East, Northern Europe and the Mediterranean, with a 20-foot dry container rate increased by US$550 and a 40-foot dry container including high cubes and refrigerated containers increased by US$1,100.
In addition, Maersk also issued a notice to impose a peak season surcharge (PSS) on all dry containers shipped from the Far East to the east coast of South America, with a charge of US$1,000 for small containers and US$2,000 for large containers. These measures have undoubtedly intensified the competitive pressure in the freight forwarding industry.
03、Summarize
Faced with such a severe market situation, freight forwarders have expressed that in addition to relying on their own professional knowledge and experience, they also need to pray for God's blessing, hoping to gain a foothold in the fierce competition. The turbulent freight forwarding market has made every practitioner feel unprecedented pressure and challenges!
However, we firmly believe that by continuously optimizing our services and improving efficiency, we will be able to better meet customer needs and become a trusted logistics partner for our customers.