Affected by 'Omicron', Freight Rates Have Risen! The Prosperity of The Shipping Market Continues

The Omicron mutant strain has attracted global attention. The epidemic in Europe continues to rebound, coupled with the emergence of Omicron mutant strains in Europe and the United States, some countries have re-strengthened their control measures, which has resulted in the gradual recovery of the supply chain system. Had a certain impact. But for the container ship and bulk carrier market, this may mean a further extension of the market boom.

Since the second half of last year, the container shipping market has flourished against the background of the global epidemic. Although the current market freight rate has slightly fallen from the historical high set in September, the spot freight rate has remained stable throughout November, even in the past. It rebounded slightly again in a week.

According to the latest issue of the Baltic Shipping Price Index (FBX), the China-Mediterranean route has continued to maintain high demand and the cargo volume has performed well. The average space utilization rate of ships is close to full capacity. The overall market freight rate has stabilized and rebounded slightly, and the freight rate has increased by 2%. To USD 13,211/FEU.

Recently, the US epidemic situation has deteriorated, and the number of new cases per day has continued to rise. Coupled with the test of new mutant strains, the pace of economic recovery in the future has shown signs of slowing down. The traditional peak season for transportation is coming to an end, but transportation demand continues to remain high. The freight rates of China-US East and West US routes both rebounded by 1%, rising to US$16,722/FEU and US$14,825/FEU respectively.

At present, the Drewry Global Comprehensive Container Freight Index is currently 6.7 times that before the outbreak in late November 2019. Alphaliner shipping analysts said that when production areas such as China or consumption areas such as the United States and Europe are blocked, the epidemic may have a negative impact on the demand for container transportation. The impact on the freight rate is positive.

Clarksons Platou Securities pointed out that Omi Keron has imposed strict travel restrictions, and consumer spending patterns may continue to benefit container shipping. Under the influence of the epidemic, European and American consumers have stopped spending on services such as restaurants or travel, and switched to spending on commodities such as computers, sports equipment, and furniture, which has caused a surge in demand for shipping in the European and American markets.