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The shipping market is experiencing a shortage of space on many routes!


The shipping market is experiencing a shortage of space on many routes!

2023-11-30 14:59:57

Shipping companies' reduction in shipping capacity is effective
Many freight forwarders said that although there are many routes with full capacity, this is basically the reason why liner companies have reduced their ship capacity. "Liner companies hope to push up next year's (long-term association) freight rates, so they reduce shipping capacity and raise freight rates at the end of the year."
A freight forwarder further stated that due to the fact that the explosion was artificially manufactured, it was not a real increase in cargo volume. As for the current level of explosion, the freight forwarder revealed, "It's just a little bit more than normal, not too much.
On the U.S. line, in addition to the reasons for liner companies to reduce ships and space, freight forwarders said that there is also the reason for the concentrated demand from cargo owners on Black Friday and Christmas in the United States. “In previous years, U.S. shipments for Black Friday and Christmas mostly occurred during the peak season from July to September, but this year there may be factors such as the cargo owner’s expectation of Black Friday and Christmas consumption, as well as the fact that there are currently express ships departing from Shanghai to the United States (short transportation time) , somewhat delayed.”
Judging from the freight index, freight rates increased on many routes from October 14th to 20th. According to the Ningbo Shipping Exchange, the Ningbo Export Container Freight Index (NCFI) of the Maritime Silk Road Index this week reported 653.4 points, an increase of 5.0% from last week. The freight index of 16 out of 21 routes increased.
Among them, transportation demand on North American routes has recovered, liner companies have temporarily suspended large-scale sailings, and booking prices in the spot market have increased slightly. The NCFI US East Route freight index was 758.1 points, an increase of 3.8% from last week; the US West Route freight index was 1006.9 points, an increase of 2.6% from last week.
In addition, on the Middle East route, liner companies have strictly controlled transportation capacity and space is tight, which has led to a continued sharp increase in booking prices in the spot freight market. The NCFI Middle East route index was 813.9 points, an increase of 22.3% from last week. Due to the significant recovery in market shipment volume at the end of the month, the Red Sea route reported 1077.1 points, an increase of 25.5% from last week.