Due to the situation in the Red Sea, the Asia-Europe shipping routes have faced some challenges and changes in May. The capacity of the Asia-Europe routes has been affected, and some shipping companies such as MAERSK and HPL have chosen to reroute their vessels around the Cape of Good Hope in Africa to avoid the risks of conflict and attacks in the Red Sea region. The rerouting has led to a reduction of 15% to 20% in the container industry’s capacity between Asia and Northern Europe and the Mediterranean in the second quarter. In addition, due to the extended voyage, fuel costs have increased by 40% per trip, further driving up freight rates. According to MAERSK’s forecast, this supply disruption is expected to last at least until the end of 2024. At the same time, as major global shipping companies have announced the suspension of the Red Sea routes one after another, the capacity of the Suez Canal has also been affected. This has led to a doubling of freight rates for the Europe routes, with some cargo having to be rerouted around the Cape of Good Hope, increasing transportation time and costs.
Since the beginning of the year, the spot market freight rates for the Asia-Europe ocean routes have experienced a significant decline, but two rounds of price increases in April have effectively curbed this downward trend. Some carriers have set higher target freight rates for routes starting from May 1st, with the target freight rate for the Asia to Northern Europe route set at more than 4,000 per FEU,and up to 5,600 per FEU for the route to the Mediterranean. Despite the carriers setting higher target freight rates, the actual transaction prices are relatively lower, with the actual freight rate for the Asia to Northern Europe route fluctuating between 3,000 and 3,200 per FEU, and for the route to the Mediterranean, it is between 3,500 and4,100 per FEU. Although some shipping companies, such as the French CMA CGM Group, are still sending some vessels through the Red Sea under the escort of French or other European naval frigates, most vessels have chosen to bypass Africa. This has led to a series of chain reactions, including congestion, vessel clustering, and shortages of equipment and capacity. The situation in the Red Sea has had a profound impact on the Asia-Europe routes, including reduced capacity, increased freight rates, and increased transportation time and costs. This situation is expected to continue until the end of 2024, posing significant challenges to the global trade and logistics industry.
Attached is a comparison of freight rates for routes from other port:
HAIPHONG USD130/240+LOCAL
TOKYO USD120/220+LOCAL
NHAVA SHEVA USD3100/40HQ+LOCAL
KELANG North USD250/500+LOCAL
For More quotes, please contact: jerry@dgfengzy.com
Post time: May-17-2024
