What to make of the avalanche in the container shipping market？
What to make of the avalanche in the container shipping market？
Benefit from the obvious cost advantage, the current global maritime transport volume in the total trade transport accounted for more than 90%, and container shipping as one of the most important maritime transport methods, its trade amount accounted for more than 80% of the amount of maritime trade, the impact on global trade is huge.
Container charter rates have fallen further sharply as weak demand, plummeting container freight rates and default fears hit the wider containership market.The container ship chartering market is experiencing the spillover effects of the plummeting freight market, with charter rates falling by 20% in a week. It is still too early to draw conclusions on the impact of the plunge in sea freight on foreign trade. On the surface, the contraction of the shipping market is the direct cause of the plunge in sea freight rates, but the deep-seated reason also lies in the changes in the external demand market.
As shown in the picture above,Asian near-ocean line entry threshold is low, fluctuations are also more obvious, according to the Shanghai Shipping Exchange Southeast Asia Container Freight Index (SEAFI) data, September 9, the latest period of quotes Shanghai - Vietnam Ho Chi Minh line, Shanghai - Thailand Linchaban line per TEU freight prices fell to 100, 105 U.S. dollars respectively. The current rate levels are even below cost and unprofitable!The third quarter of each year is the traditional peak season for shipping, but in the context of global inflation, the economy is expected to weaken and demand is low, the shipping industry is not in peak season this year.
Put another way, this may be the best time to import and export,Perhaps the lower sea freight rates are also an advantage, seize the moment. In our last article we talked about how the market for diapers is gradually expanding and combined with that now is the best time to be in nappies.
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