The freight will go up? ! Southeast Asia routes continue to rise! Up to 5 times!

Since the outbreak of the epidemic, the shipping industry has faced unprecedented challenges. Ports are congested, lack of containers, hard to find a container, and freight rates have skyrocketed, and major routes have experienced skyrocketing increases. After experiencing the previous decline in freight rates on some routes, many foreign traders are still looking forward to further decline in freight rates...
Sea freight in Southeast Asia continues to rise, with the highest soaring over 5 times
The Southeast Asian market can be said to be a sudden change. Since October, the Southeast Asian shipping market has continued to increase the freight rates of the US routes. The freight rates of almost all major ports in Southeast Asia have generally increased nearly doubled in just one month!
Recently, taking South China to Ho Chi Minh Port as an example, from the end of October to the beginning of December, one month before and after, the ocean freight for a 40-foot container has risen from about US$500 to the line of US$2,000 to US$2,500, the highest increase is as much as 5 times. !
It is understood that the recent rapid increase in freight rates in Southeast Asia may be related to the cancellation of multiple flights in Southeast Asia, lack of vessel frequency, and congestion in some Southeast Asian ports. In addition to the slowdown of the epidemic in Southeast Asia in the past two months, the requirements for epidemic prevention measures for manufacturing companies have begun to relax, and factories have resumed production and manufacturing has resumed, resulting in a strong demand for shipping and air transportation in the region!
The combination of various reasons finally promoted the collective rise of the Southeast Asian shipping market!
In view of the current market situation in Southeast Asia where space is still tight and freight rates continue to rise, many forwarders have issued warnings to customers exporting to the Southeast Asian market. No matter what the earliest market price is, they can leave this week because the highest price this week is next week. The lowest price.
The tight shipping capacity and the strong demand have not only caused the major shipping companies to continue to increase their freight rates, but already shipping companies have quickly turned the container shipping capacity from the congested West Coast to the Asian line!
Long-term contract ocean freight is soaring! Yang Ming said that in 2022, the price of European line long-term contracts will increase by 2-3 times
With the impact of the epidemic and global supply chain congestion, the shipping market is becoming increasingly tense. Recently, shipping data analysis company Xeneta said that carriers who wish to lock in long-term shipping contracts will face severe price shocks this month.
According to Xeneta's statistics, in November alone, the global average long-term contract shipping price rose by 16%, a cumulative increase of 121% year-on-year. Prior to this, in July, the long-term freight rates of all major shipping routes had risen sharply, reaching a record increase of 28%.
The soaring freight rates have brought huge profits to the shipping industry, and many of them have doubled (or even tripled) their revenue year-on-year. The shipping industry made more than $100 billion in profits in the first nine months of this year. This is more than the total revenue of the entire industry in the past 5 years.
Recently, Yangming Shipping held a performance briefing meeting and said that Yangming Shipping is optimistic about the market next year and has begun to negotiate with customers for a long-term European line contract next year. It is expected that the price of the new long-term contract is expected to increase by 2 to 3 times.
Recently, Yangming Shipping held a performance briefing and stated that due to port congestion and lack of work this year, the cargo volume in the first three quarters decreased by 10% from the same period last year to 3.31 million TEU. However, due to the high freight rate, the cumulative profit in the first three quarters was still the previous year. New high, reaching NT$109.887 billion (approximately RMB 25.209 billion). Among them, the largest revenue contribution is the European line, accounting for 44%, followed by the US line 32%, and the Asian line 24% (including the Middle East, South America, and Australia).
Looking to the future, Yangming Shipping said that it usually takes about a year to sign. At present, the spot freight rate of the European line fluctuates at a high level of 13-1.5 million US dollars/FEU, which is much higher than the contract price, and the spread is 2 to 4 times.
Yangming Shipping has successively negotiated with customers for the long-term contract for next year, and believes that the long-term contract rate in the new year "increases by 2 to 3 times should be no problem." In the current peak season, with multiple adverse factors such as serious port clogging and unstable shipping schedules, the shipping situation is still tight.