The West Coast is oversold! CMA CGM calls on shipping companies not to engage in freight price wars
The rush for goods in the off-season and the start of a freight war have dragged down the Shanghai export container freight index SCFI to fall below 1,000 points again. The latest quotation on the 17th continued to fall by 2.94% to 999.92 points. Freight rates on major European and American routes all fell, and the rate was 40 feet per 40 feet west to west. Containers fell by 7.98%, the deepest decline was seen. The Mediterranean route fell by 3.13% per 20 feet, the European route fell by 2.08%, and the US East route fell by 0.13%.
Previously, shipping giant CMA CGM and others publicly called on the shipping industry to avoid price wars amid sluggish economic conditions and imbalances between supply and demand, lest they fall into a long-term recession. Price wars hurt everyone.
It is worth noting that industry insiders in the freight forwarding industry estimate that freight rates on the US-West route have fallen sharply. On November 1, the freight rates increased by about US$400. By this time, almost all of the increases had been given back, and the gains saved last time had been reduced to only About US$100; in addition, shipping companies have begun to increase their efforts to control cabins on the East US route. In November, they called for an increase of US$300-400, and in two weeks they gave back US$200-300, with an actual increase of US$100.
As for the European route and the Mediterranean route, the latest declines per 20-foot container have converged to 2.08% and 3.13% respectively. However, people in the freight forwarding industry revealed that some shipping companies' European routes have fallen below four digits, with freight rates per 40-foot container approximately US$900 to US$1,050. .
The industry said that after the year-end holiday purchasing period, the cargo volume was sluggish in the off-season, but it was difficult to stop a large number of new ships from being put into operation. In order to increase the ship loading rate, shipping companies rushed to rush for goods and started a freight war. Freight prices on European and American routes have once again dropped. Back on schedule, it is rumored that America West is approaching the long-term contract price for some customers.
It is reported in the market that the shipping company has informed that European and American routes will once again promote price increase plans on December 1, with the goal of maintaining freight rates within the range of a small profit. Next, we look forward to the arrival of the traditional small peak season before the Lunar New Year, which will start in mid-December at the earliest. Shipments will be shipped before the Lunar New Year. Shipping companies will have a higher success rate in waiting for opportunities to raise prices.
The latest SCFI quotation in this issue is that the freight rate per 20-foot container from Shanghai to Europe is US$707, down US$15, and a weekly decrease of 2.08%; the freight rate per 20-foot container from Shanghai to the Mediterranean is US$1,147, down US$37, and a weekly decrease of 3.13%; from Shanghai to The freight rate per 40-foot container in the US West was US$1,696, a decrease of US$147, and a weekly decrease of 7.98%; the freight rate per 40-foot container from Shanghai to the US East was US$2,351, a decrease of US$3, and a weekly decrease of 0.13%.