At present, with the continued weakness of shipping demand, freight rates continue to test towards the bottom. A number of routes fell significantly, among which the European route and the East Coast route of the United States dropped the most.

According to the latest data of the latest Shanghai export container comprehensive freight index, the freight rate of the Shanghai Europe route fell below 1500 US dollars/TEU last week, down 16.2% from the previous period.

On the other hand, the freight rate of the East Coast route of the United States also fell to $4223/FEU, a weekly decline of 13.6%.

Due to the accelerated decline in freight rates, many shipping companies have stepped up their efforts to regulate shipping space, but it is increasingly difficult to maintain costs. The freight rate of SCFI Europe has dropped by 30% in recent three weeks.

Due to the continuing conflict between Russia and Ukraine, global inflation is very serious, which severely suppresses consumption, greatly reduces the volume of goods and weakens the demand for transportation. 

The contraction of demand in Europe and the United States and the fact that the supply of transport capacity is greater than the demand for transport is the key to the continuous and rapid decline of freight rates.

Contrary to the previous supply chain chaos and the imbalance between supply and demand caused by the port of Cyprus. Sea Intelligence predicts that if the global economy is determined to go into recession, causing the company to reduce production and layoffs, the year-end volume of goods may face greater correction.

At present, many shipping companies, such as Maersk and Hebrot, have said that they will adjust their ship capacity to reduce unnecessary costs.

Sea Intelligence said that as of November 4, the shipping company had cancelled the transportation capacity of 446,756 TEUs deployed on the trans Pacific eastbound route in November, accounting for 17.1% of the total transportation capacity of 2.6 million TEUs, which was higher than 195,391 TEU three weeks ago.

At present, Sea Intelligence estimates that 212,913TEU transport capacity of the trans Pacific eastbound route will be removed in December, accounting for 7.7% of the total transport capacity of 2.76 million TEUs. Three weeks ago, the agency predicted that the capacity to be cancelled in December was 60724 TEU.

GLA hereby reminds the freight forwarders that in order to reduce unnecessary losses, please pay attention to the latest logistics information in time to avoid delayed delivery of goods.