Auto & Transportation

Seeing that the Spring Festival is approaching, during this period of time, due to the epidemic, many parts of the country have issued a "non-essential do not return home" initiative; fortunately, the epidemic situation has improved in many places, and everyone wants to go home and reunite with their families.

Tow truck drivers are no exception. They are in the port all year round, and it is rare to be reunited with their families. Therefore, most drivers choose to go home early for the Chinese New Year. Due to the early completion of logistics vehicles and trailers, many freight forwarders and shipping companies have also cut orders in advance and entered the final stage.

Freight rates fell for two weeks in a row, with the largest decline in the eastern United States

With the Spring Festival holiday approaching, the volume of Asian exports decreased, and the Shanghai Export Containerized Freight Index (SCFI) fell for two consecutive weeks.

According to the latest data released by the Shanghai Stock Exchange on January 21, the SCFI index ended last week rising for nine consecutive weeks and set a record high for six consecutive weeks. For the first time, the freight rates of major routes such as the US-West Route, the European Route and the Southeast Asia Route have been jointly revised down for the first time.

Among them, the Far East to the eastern line of the United States saw the largest decline, with the freight rate dropping 3.34% to $11,337/FEU for the week; the western line of the United States fell slightly by 0.23% to $7,976/FEU.

In contrast, the performance of the European route was relatively stable. The freight rate of the Far East to Mediterranean route increased by 0.03% to US$7,522/TEU, and the freight rate of the Far East to Europe route decreased by 0.18% to US$7,783/TEU.

The near-ocean line remained mixed. The freight rate of the Far East to Japan Kansai line increased by 23 US dollars compared with the previous week, the Far East to Japan Kanto line fell by 7 US dollars compared with the previous week, and the Far East to Southeast Asia route to Singapore fell by 13 US dollars compared with the previous week. The line to Korea was down $7 from the previous week.

According to industry analysts, it is impossible for the freight rate to remain high all the time. As the Chinese Spring Festival holiday approaches, the demand decreases, and the decline in the freight rate reflects the market demand. Such a pullback trend is normal.

According to a person in the freight forwarding industry, the transaction price of both the trans-Pacific route and the European route is currently maintained at a high level. China will start production in the next two weeks of the year, and it is expected that the freight rate will continue to adjust.

However, in the next February and March, the US-West docker contract will start negotiation. According to past practice, if the negotiation fails, it may lead to sabotage or even strike. The cargo owner pulls the goods in advance, which will push up the demand for transport capacity in the first quarter and support the high freight rate. High freight rates are expected to remain at least until the second or third quarter.