In the second half of this year, container freight rates began to decline all the way. This is largely due to the market's concern about the global economy, which has led to reduced demand and lower prices.

According to the data of SHIFEX, one of the spot freight index of many containers, the freight rate of 40 foot containers transported from China to Los Angeles Port fell to 1825 dollars in October, equivalent to the peak season level before the epidemic.

With the slowdown of the overall container index in the past few weeks, some experts believe that this is a sign that the industry is close to bottoming out. Several shipping companies suspended more services to stabilize spot freight before the upcoming Asia Europe route contract negotiation.

On the other hand, container charter and second-hand ship prices also declined.

VesselsValue data shows that the one-year time charter level of Panamax (4250 TEU) ships reached a peak of $99000/day in March this year; By the end of September, the rent had dropped to $51000 per day.

From January to September 2021, the trading volume of second-hand container ships was 539, while only 270 were sold in the same period this year. Among them, 95 second-hand ships were traded in the second quarter of this year, while only 46 ships were traded in the third quarter.

MSC became the largest buyer again, buying 7 ships, and Wanhai Shipping bought 4 Panamax ships.

In terms of prices, in sharp contrast to the exponential growth of container ship asset prices in the first three quarters of 2021, the ship prices in 2022 will generally decline significantly.

In general, after the strong performance in the first half of this year, the transportation capacity of major routes around the world has slowed down. 

Some experts said that the number of ship scrapping will increase significantly. It is expected that after 2023, the demand for new shipbuilding will decline, and the price will probably continue to decline.

GLA reminds our freight forwarders to keep an eye on the latest developments in the shipping market, seize the opportunities at this stage and achieve better development.