From previous days, Q3 is the peak season for global maritime container transportation, and ocean freight cost will also rise-up with the high activity. In contrary, a fallen off a cliff show up well in global commerce.
According to recent data, the Shanghai Container Freight Index (SCFI) was 2562.12 points, down 285.5. points from last week, with a weekly decline of 10.0%, which has been declining for 13 consecutive weeks. It was down 43.9% from the same period last year. Drewry’s World Containerized Index (WCI) has fallen for 28 consecutive weeks, the latest down 5% to $5,378.68/FEU. The Baltic Sea Freight Index (FBX) global composite index was $4,862/FEU, down 8% for the week. The Ningbo Export Container Freight Index (NCFI) of the Ningbo Shipping Exchange closed at 1,910.9 points, down 11.6% from last week.
What are the reasons behind this abnormal fall?
Since the beginning of 2022, the global container transportation market has been similar to the situation from last year. The freight cost began to fluctuate after reaching its peak. The factors such as high inflation rates in Europe and the United States, geopolitical conflicts in some regions, and the endless epidemic policies, contributed this sharp decline as of now. In addition to this, the imbalance of international capacity allocation and the reduction of orders in the shipbuilding market have also had a certain impact on freight fee.
One point should be pointed out that, the continues reduction of freight cost, in a sense, was also a periodic pull-back of last year’s “sky- high” prices, which is conducive to bringing the soaring freight rates back to a relatively reasonable price level. At present, the moderate decline of international shipping prices is reasonable, but the non-stop slump or even a cliff-like decline will damage the entire shipping market in the end.
What is the updates price among the main routes?
North American routes: The freight rate in the United States and West fell from US$3,959 last week to 3484/FEU, a weekly drop of US$475, or 12.0%; The US East freight rate fell sharply to US$7,767/FEU from US$8,318 last week, down US$551 or 6.6% for the week.
European routes: The European base port freight rate is 3877 US dollars/TEU, down 375 US dollars for the week, down 8.8%.
Mediterranean route: The freight rate was US$4,222/TEU, down US$552 for the week, down 11.6%.
Persian Gulf routes: The freight rate was US$1,481/TEU, down US$286 or 16.2% for the week.
Australia-New Zealand route: The freight rate was US$2,489/TEU, down US$173 or 6.5% for the week.
South American routes: Fell for 7 consecutive weeks, the freight rate was 7183 US dollars/TEU, a weekly drop of 798 US dollars, a decrease of 10.0%.
What Ocean Treasure Could Offer in During this Freight Cost Fall?
September is the most active month of a year. Majority of purchase plans have been working on for Christmas and New year in each market. In the wave of freight change, importer’s cost has been decreased a lot. Isn’t it a best time to purchase?
Although there are new trends in market’s popular products. Ocean Treasure, as a trading expert for 15 years, is always innovating by developing and expanding its product range. Products in 2022, not only limited in the evergreen like Cod, Alaska Pollock, Squid, more reasonable options like mackerel, milkfish are welcomed by many areas.
Ocean Treasure also has a wide range of fruit and vegetable. Influenced by the record-hot summer, lots of agricultural production had been reduced in Europe, US and Africa. Ocean Treasure provides frozen Mix Vegetable, Onion, Garlic and Tomato Paste etc.
Holding the three global certificates — BRC, ASC, MSC, Ocean Treasure is your only eye in Asia. Our international inspector will take a good care of your order under European Standard.
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