Shipping prices continue to rise, with price increases affected by multiple factors

At the end of 2023, affected by the Red Sea crisis, international shipping prices continued to rise. In particular, freight rates on European and American routes doubled in just one month. May is the traditional off-season for the international shipping market, but this year the situation is different. Since the end of April, freight rates on European and American routes have generally increased by double digits, with freight rates on some routes soaring by nearly 50%. “It’s hard to find a box.” “The situation arises again.

Shipping prices continue to rise

Data from the Shanghai Shipping Exchange shows that on May 17, the Shanghai export container freight index reported 2520.76, a nearly 30% increase from April 26. In addition, as of May 13, the Shanghai Export Container Settlement Freight Index for the European route reported 2512.14 points, an increase of 15.5% from April 29, and the West-American route reported 2508.00 points, an increase of 38.4% from April 29.

Zhang Jie, marketing director of Shanghai Hengtie International Logistics Co., Ltd., said, “The month-on-month increase on many routes has even reached 40% to 50%. For example, the freight rate of a 40-foot container on the European route in April was about US$4,000, and it has already increased in May. At around US$6,000, space on some routes is hard to come by, making it difficult for exporters to book ideal shipping dates.”

According to market data, the main contract of the Shanghai International Energy Trading Center Container Index (European Line) futures closed at 4033.5 points on May 15. In comparison, in mid-November last year, the quotation of the main contract was less than 800 points, which means , Container Shipping Index (European Line) futures quotations have increased approximately five times in half a year.

At the same time, the shipping market, which is already the off-season, has set off a “tide of price increases.” Leading shipping companies such as Maersk, CMA CGM, and Hapag-Lloyd have disclosed information on route freight increases. The price increases cover Asia, Europe, North America, For routes in multiple directions such as South America, some routes have seen an increase of nearly 70%. COSCO Shipping Container Lines Co., Ltd. also issued a price increase notice, saying that shipping prices from the Far East to the United States and Canada will rise significantly, with an increase of US$1,000 to US$2,000.

The background of the recent continuous surge in freight rates is that many trunk lines in the shipping industry are already fully loaded. As for the reasons for the increase in freight rates, industry insiders and institutions generally believe that it is a combination of multiple factors, one of which is the increase in the cost of some routes. Against the background of freight rates rebounding strongly from the bottom, the performance of shipping industry chain companies has rebounded significantly since the beginning of this year. Regarding the subsequent freight price trends, some industry insiders believe that there are still many uncertain factors and it is impossible to make accurate and qualitative predictions.