The transportation demand in the container shipping market continued to be weak, and the freight rates of most routes continued to decline, but the overall decline slowed down.
For the Persian Gulf line, because the Qatar World Cup is approaching, and some alliances have withdrawn a route, the freight rate has risen by nearly 60% in two weeks.
Some key routes indices are as follows:
1. European routes: The overall loading level of the routes is not high, and the spot market booking prices continue to decline.
The freight index of European routes was 1565.9 points, down 3.6% compared with last week; the freight index of east route was 1536.2 points, down 2.0% compared with last week; the freight index of western route was 1750.4 points, down 5.7% compared with last week.
2. North American routes: The transportation demand is limited, the market is bidding for goods, and the booking price is constantly hitting the lows of the year. The freight rate of the North American route is less than US$1,800/FEU.
The freight index of the US east route was 1834.6 points, down 3.1% compared with last week; the freight index of US west route was 1012.3 points, down 7.2% compared with last week.
3. Middle East route: The overall shipping space of the route is still relatively tight, and the freight rate of the route maintains an upward trend, but the increase is narrowed.
The Middle East route index was 1274.9 points, up 9.9% from last week.
In addition, the market for the following routes was volatile this week:
India-Pakistan route: Affected by the suspension of sailings and delays in the shipping schedule, the shipping space on the route continued to be tight, and the spot market booking price continued to rise.
The freight index on the India-Pakistan route was 1420.2 points, up 11.3% from last week.
The latest composite index of the Drewry World Container Index (WCI) fell 3% from the previous week to $3,383/FEU, marking the 34th consecutive weekly decline and 10% lower than the average of the past 5 years, but still lower than the 2019 average of 1,420 The dollar was 138% higher.
According to the Drewry World Container Index, the spot freight rate from Shanghai to Los Angeles fell 5% from the previous week to US$2,497/FEU; the freight rate from Shanghai to New York fell 2% to US$6,214/FEU.
According to the FBX freight index data, the spot freight rate for the Asia-West America route fell 6% from the previous week to US$2,546/FEU; the Asia-East US freight rate fell 4% to US$5,797/FEU.
Against the backdrop of unusually weak demand, ocean carriers are being forced to significantly adjust their weekly capacity from Asia to Europe and the United States. In this bleak scenario, more flights may be cancelled in the coming months.
The partners MSC and Maersk of the 2M Alliance announced recently that they would cancel the AE1/Shogun Asia Nordic voyage from China's Capital Airlines again due to the "expected decrease in demand", that is, the 14336 TEU "MSC Faith", which was originally scheduled to sail from Ningbo Port on November 6.
In addition, Drury's latest tracking data on cancelled voyages shows that 82 of the 721 scheduled voyages were cancelled during the 43rd and 47th weeks on major routes across the Pacific, Asia to Northern Europe and the Mediterranean, with a cancellation rate of 11%.
Among them, 56% of the blank voyages will take place on the trans Pacific eastbound routes, 23% on the Asia Europe and Mediterranean routes, and 21% on the trans Atlantic westbound trade routes.
In the next five weeks, The Alliance has announced the cancellation of 29 voyages, followed by Ocean Alliance and 2M Alliance, which cancelled 18 voyages and 16 voyages respectively. In the same period, the non shipping alliance implemented 19 blank voyages.