Our reporter Li Ke

April and May each year are traditionally the off-season for foreign trade, and shipping prices during the same period are also at a relatively low level throughout the year. However, this year's off-season for foreign trade is not "light". Freight rates have been raised on many routes around the world, and many foreign trade companies and freight forwarding companies are even facing a situation where it is "hard to find a box".

The reporter learned that the intensification of the geopolitical situation, the recovery of global market demand, the evolution of trade patterns and other factors have superimposed, pushing global shipping prices to continue to rise. Against this background, some foreign trade companies postponed shipments, some chose to change transportation methods, and some shipped orders for the second half of the year in advance to proactively respond to price increases.

Multiple factors push up freight rates

Since April this year, China’s export container freight index released by the Shanghai Shipping Exchange has continued to rise. The latest data shows that the current freight index from May 10th to 17th was 1311.85, with a weekly increase of 6%. The increases in Europe, South America, and the West American route were more obvious.

The reporter learned that recently, international container liner carriers such as France's CMA CGM, Germany's Hapag-Lloyd, and Denmark's Maersk have announced freight rate increases, with freight rates rising by up to US$2,000. Freight rates on some routes have increased by more than 50%, covering multiple routes from Asia to Europe, North America, South America, etc.

CMA CGM announced that starting from May 15, it will increase the uniform freight rate for 20-foot small containers on the Asia to Northern Europe route to US$2,700, and the uniform rate for 40-foot large containers will be raised to US$5,000. This is in line with the company's May 1 Compared with the implemented freight rates, they were increased by US$500 and US$1,000 respectively.

Hapag-Lloyd announced that it will increase the uniform rates for routes from Asia to Northern Europe and the Mediterranean starting from May 15. In addition, starting from May 16, peak season surcharges will be levied in many places in Africa, ranging from US$250 to US$600.

Maersk also issued a notice to impose peak season surcharges on routes from Asia to the west coast of South America, Central America and the Caribbean, of which 20-foot containers will be charged an additional $1,000, and 40-foot and 45-foot containers will be charged an additional $2,000.

The Chinese manager of Maersk's West Africa region told a reporter from the International Business Daily that the current factors affecting the shipping market are complex. Demand in the European market is picking up. At the same time, the Red Sea crisis broke out, causing the world's major shipping companies to avoid the Red Sea routes and change routes. At the Cape of Good Hope in Africa, shipping costs have increased significantly and transportation times have also been extended accordingly.

Freight rates on not only European routes but also South American routes have continued to rise. The controller believes that the US's announcement of additional tariffs on some Chinese products has led some Chinese companies to increase their cooperation with South America, which in turn has led to an increase in freight rates on South American routes.

The manager further analyzed that in addition to the escalating geopolitical events and the evolution of the global trade pattern, some shipping companies have made strategic adjustments. In addition, the fluctuations in international fuel prices and the rising demand for replenishing inventories in Europe and the United States have provided confidence for shipping companies to raise prices.

Enterprises take multiple measures to adapt to changes

During the interview, the reporter learned that in the face of the rise in global shipping prices, some foreign trade companies are "braking on the static" and choosing to postpone shipments; some foreign trade companies are "adapting to changes" and choosing transportation methods such as China-Europe freight trains; and Some companies choose to extend the cargo operation cycle and ship orders for the second half of the year in advance to ensure on-time delivery.

"Since the beginning of this year, orders from markets such as Europe and the Middle East have continued to increase, and the order volume has increased by about 50% compared with the same period last year." Ding Yandong, general manager of Ningbo Remax Door and Window Accessories Co., Ltd., made an calculation to the International Business Daily reporter : The shipping cost for a 40-foot container to Saudi Arabia was around US$3,500 before, but now it has risen to US$5,500 to US$6,500, causing a significant increase in product costs.

"Due to the continuous increase in sea freight prices, the company currently has four containers of goods that have been delayed in shipment, with the latest shipment time being delayed by nearly a month than originally scheduled." Therefore, Ding Yandong suggested that customers cope with the price increase dilemma through transportation methods such as air freight or China-Europe express trains.

Chen Yao, general manager of Huludao Hengyi Garment Co., Ltd., said in an interview with a reporter from International Business Daily that since the beginning of this year, international geopolitical conflicts have intensified. In the face of rising shipping prices, the company has changed the mode of transportation of export goods from sea transportation to China-Europe train transportation. "Compared with sea transportation, China-Europe freight trains have the advantages of short transportation time, safety and punctuality, and smooth transportation."

"We used to use fast shipping by sea, but now we will choose regular ships to reduce costs by lengthening the cargo operation cycle." Luo Qian, operations director of Shenzhen Hanlin International Trading Co., Ltd., told the International Business Daily reporter that in order to ensure that the goods are delivered on time, in When transportation distances and transportation times are extended, shipments need to be shipped in advance. Recently, the company has planned to ship orders for the second half of the year.

Luo Qian said that in addition, the company will take some necessary measures to reduce operating costs, such as sending goods to overseas warehouses in advance, and then transferring goods from overseas warehouses to warehouses in the exporting country.