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    Home > Chemial News > Valuable News > Suspension of service! ​The freight rate has skyrocketed by 450%!

    Suspension of service! ​The freight rate has skyrocketed by 450%!

    Echemi 2021-04-27

    Recently, news of logistics delays caused by congestion in North American ports and excessive waiting time for container ships has emerged one after another. Shipping companies have adjusted multiple voyage schedules when their capacity is insufficient and cannot meet all needs, hoping to reduce the impact on the logistics market.


    According to information obtained by Mark Lin, as of now, from April to May 2021 (that is, the first port of departure in the 14-22 week total of 9 weeks), a total of 92 voyages from Asia to North America/Europe have been suspended.
    The Port of Montreal’s Dockers’ Association stated that they will start an indefinite strike on Monday, April 26, which is the latest escalation of the current labor dispute. Some Amazon warehouses in Canada are closed.
    The number of confirmed cases exceeds 300,000 every day, and oxygen and crematoriums are not enough. The epidemic situation in India is seriously out of control. Some ports have begun to announce the suspension of operations, and freight forwarders have issued the highest-level warning!

     

    The shipping schedule was seriously delayed, and the shipping company adjusted the schedule for multiple voyages
    On April 22, Maersk issued an announcement stating that due to continued congestion at North American ports, the schedule of its trans-Pacific route was severely delayed.
    In addition, congestion in Asian ports, bad weather and congestion on the Suez Canal have exacerbated this situation.
    This directly leads to an increase in ship turnaround time by 2 to 3 weeks compared to the normal situation, making the interval between some voyages departing from Asia more than 7 days.

     

    In the announcement, Maersk announced the adjusted voyages, including related voyages on 10 trans-Pacific routes, involving ports such as Qingdao, Ningbo, Yantian, Nansha, Xiamen, and Hong Kong. The voyage adjustment will be implemented from May.
    However, trans-Pacific routes such as TP6, TP10, and TP88 will not be affected by this adjustment for the time being.

     

    The specific adjustments are as follows:

    adjustment

     

    The 2M alliance partner Mediterranean Shipping also added that the current market challenges have affected port operations, leading to increased port congestion and shipping delays, so the following routes have been adjusted.

     

    In addition, Amberjack, Pelican and Pearl services will not be affected.
    In view of this, the 2M Alliance has decided to adjust the related voyages of 10 trans-Pacific routes, involving Qingdao, Ningbo, Yantian, Nansha, Xiamen, Hong Kong and other Chinese ports, starting from May this year.


    The specific adjustments are as follows:

    adjustment1

     

    67 recent suspensions in North America
    According to the data summarized by Easy Sailing Schedule, as of now, from April to May 2021 (that is, the first port will depart from the 14th to 22nd week in 9 weeks in total), there are a total of 92 voyages suspended from Asia to North America/Europe. There were 48 voyages in the West, 19 voyages in the East of the United States, 15 voyages in Northern Europe, and 10 voyages in the Mediterranean.
    From the perspective of the alliance, the THE alliance has suspended 47 voyages, the Ocean Alliance has 21 voyages, the 2M Alliance has 16 voyages, and other independent routes have 8 voyages.

     

    Soaring 450%, freight rates soaring
    Demand in the U.S. market is booming, the air cargo market is "completely crazy" and freight rates are "astonishing", and routes into the United States are particularly affected.

     

    The volume of the Chinese market is increasing crazily every week, and in terms of freight rates, the US market is the worst. The price from Hong Kong to the US will soon exceed US$13/kg.
    As usual, the high yield in the United States has attracted airlines to choose this route. And because the capacity is arranged on the higher-yield U.S. line, other regions will suffer losses. International air cargo companies like IAG Cargo have been looking for higher profits and strive to occupy a larger share of the higher-priced North American market.
    Due to the relaxation of the new crown epidemic prevention control restrictions in some countries, demand is increasing, and large-scale commodity transportation has begun to replenish inventory, and epidemic prevention products still occupy a large part.

     

    For exporters, in addition to the skyrocketing air cargo prices, the situation of container shipping does not seem to be much better!
    According to the Baltic Sea Index (FBX), the Nordic segment has risen by 6% this week to $7,791 per 40 feet, a significant increase of 450% from the rate a year ago.
    Whether it is sea freight, air freight, or international express delivery, in April, unexpectedly, it entered a mode of liquidation, warehouse storage, and soaring freight, and shipping prices were not bearish in the short term.
    It is recommended that you place your order quickly and send it as soon as there is a cabin. Don't wait any longer, the more you wait, the higher the cost!

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