General

The freezing of sea freight is only a freezing of the spot price, which does not necessarily exclude the additional increase in surcharges.

During the peak shipping season, China-US shipping prices returned to more than US$20,000/FEU (40-foot standard container).

At the same time, shipping giants such as CMA CGM suddenly announced the freezing of freight rates. Can this alleviate the current situation of "difficult to find a box" or even "difficult to find a ship"? Can the rising freight rate peak?

A reporter from China Business News checked the global container freight index launched by the Baltic Shipping Exchange and Freightos, showing that as of the 12th, the shipping prices of China/Southeast Asia-North America West Coast and China/Southeast Asia-North America East Coast continued to rise slightly, each exceeding US$20,000. Guan: They were US$20,586/FEU (40-foot standard container) and US$22,173/FEU, which both increased by more than 500% compared with the same period last year. The price in the same period last year was more than US$3,800.

Huo Jianguo, vice chairman of the China World Trade Organization Research Association, said in an interview with a reporter from China Business News that the statements of these shipping companies mean that global shipping prices will tend to be relatively stable.

"These companies are just arrogant to say that they can't raise their prices, but the price is now at a high level, and it is unlikely to be lowered. In fact, this price is the result of market supply and demand on the one hand, and of course it is also affected by the epidemic. In addition, I think It also has a certain relationship with them to increase prices with traditional shipping companies." Huo Jianguo said.

September to December is the traditional peak season for cross-border e-commerce sales. Han Bing, head of the market communication center of cross-border e-commerce Dunhuang. It is very popular in the US market. "We suggest that cross-border e-commerce merchants immediately increase the sales and stocking of related products, make good use of overseas warehouses, and deal with the risk that logistics prices may continue to rise during the peak season in the fourth quarter." He said.

Shipping giants have announced the freezing of freight rates

On the 9th local time, CMA CGM, the world's third-largest container carrier, suddenly announced that it would freeze the spot market price of transported goods.

CMA CGM stated that although the group expects prices to rise in the next few months, the spot market freight rates for freight customers will remain at current levels within five months. This means that from September 9, 2021, until February and January 2022, CMA CGM will freeze its freight rates. The statement indicated that "In the face of an unprecedented situation in the shipping industry, the Group puts the long-term relationship with its customers first."

Simply put, in the maritime market, customers can choose to sign short-term and long-term contracts with shipping companies, but shipping companies have always encouraged their customers to sign long-term contracts. At present, even if long-term contracts are locked at prices lower than the spot market, this The price level has also been much higher than the price before the pandemic: Taking the shipping price between China and the United States as an example, in August-September 2020, the shipping price between China and the United States is between 3000-4000 US dollars/FEU, and is currently at 20,000 US dollars. /FEU has risen 500% over the same period.

Lars Jensen, a container shipping analyst at Vespucci Maritime, said that CMA CGM’s decision shows that they prefer contract customers and customers with stronger existing relationships. "So it is an advantage for customers who have this kind of relationship, but it will be a disadvantage for customers who may prefer to shop around (usually small customers)."

CMA CGM is a member of the Ocean Alliance and a major shipping company on North American routes. The three major shipping alliances-2M, THE Alliance and Ocean Alliance control more than 80% of the global container shipping market.

After CMA CGM announced the freezing of freight rates, another shipping giant Hapag-Lloyd also expressed "follow-up": "We believe that the spot freight has peaked and there will be no further increase in freight rates." Hapag-Lloyd also stated in the statement. Said, "I hope the market will slowly begin to calm down."

Huo Jianguo told CBN reporters that shipping prices have reached historical highs, largely due to the high prices reported by shipping companies. He said: "So, they have a certain responsibility. Of course, in the market, for example, there are many freight orders, but everyone can't grab the boxes. It is normal to increase the price. But the current price increase is too outrageous, then There is a problem, and it's almost time to control it a bit."

Freight is frozen but the surcharge is unknown

However, Jensen pointed out in the research report that the freezing of sea freight is only a freezing of the spot price. This does not necessarily exclude the surcharge and the additional increase. This has become a major burden for importers and exporters, and the surcharge is usually excluded from the freight. Beyond the benchmark.

Prior to this, the phenomenon of shipping companies’ arbitrary collection of surcharges has attracted the attention of the White House in the United States, and the US Federal Maritime Commission (FMC) has been instructed to investigate. FMC has audited nine shipping companies, including Maersk, to determine whether these shipping companies Use market monopoly to collect late fees and late fees from shippers for investigation.

FMC Chairman Ma Fei once said: “We have heard more and more reports that ocean carriers are evaluating new additional charges, such as ‘congestion surcharge’, with little notice or explanation.”

"The congestion of the freight system is far from a sudden or isolated incident in a port or geographic area, but ubiquitous and has been going on for several months. In my opinion, these factors have been included in the record high prices charged by the operators. "In the process." Ma Fei commented, "As the chairman of FMC, I want to know the reasons why operators charge additional fees. I strongly support the strict review of the FMC Law Enforcement Bureau and prevent any additional fees that may not fully comply with laws or regulations. "

As for when the shipping price can really be lowered, Huo Jianguo told the CBN reporter: "It still depends on the trend of the epidemic. The price should be difficult to come down this year, because the price has risen and the epidemic has not improved significantly. I am afraid that. By next year, if the epidemic really converges, the price of ocean shipping will drop."

"When there was no epidemic in history, although there were low seasons and peak seasons, there were also some price fluctuations, but they did not rise twice or three times as they are now, so now it is the highest level, reaching the ceiling of shipping prices. There has never been such a high in history. Yes." Huo Jianguo said.