Container shipping rates continue to increase sharply. Some sources say that reservations are currently fully booked for 1 month. It is difficult to book a seat on a train without paying for premium service. Many customers are trying to ship goods before the Lunar New Year.
According to S&P Global Commoditiesshipping lines are sharply increasing container shipping rates, especially for routes to Europe in the context of Houthi rebels continuously attacking the Bab al-Mandab Strait area.
Accordingly, as of January 9, freight rates to Europe increased to a 15-month high. Spot shipping rates from North Asia to the Mediterranean are 7,000 USD/FEU (40-foot container) – the highest level since September 2022, according to Platt Container Rate data.
Ship fares from North Asia to Northern Europe are also at 6,000 USD/FEU, up 20% during the day, reaching the highest mark since September 22, 2022.
Source:S&P Global Commodities (Vietnamese US)
A source said that reservations are currently fully booked for 1 month. It is difficult to book a seat on a train without paying for premium service. Many customers are trying to ship goods before the Lunar New Year.
Another source said some shipping lines have even canceled future contracts, forcing customers to book ships for immediate delivery at prices significantly higher than the previously agreed price.
The fact that shipping lines are diverting to avoid the Suez Canal and go through the Cape of Good Hope is causing container supply to be limited due to increased transit time and the risk of congestion at ports.
Supply chain challenges
Despite shipping lines’ flexibility in modifying services, a shortage of empty containers could occur in Asia as ships are expected to travel longer on regular routes due to rerouting around Cape Hao Vong.
According to data from S&P Global Commodities at Sea, the alternative route increased shipping times for goods from Asia to Northern Europe by 30% and for Asia-Western Mediterranean by 60%. Due to increased fuel consumption and higher fuel transportation costs, carriers have increased their rates.
A forwarder said: “Some shipping companies manage containers better than others. However, shipping times back to Asia will be an issue. At the same time, port congestion and supply chain shortages will cause some difficulties for shippers.”
Freight rates are forecast to increase in the near term, with the container market expected to continue to be affected by the conflict in the Middle East.
“The current price level will remain for a while,” said a forwarding source. I suspect the ripple effect will last until the end of the second quarter when the peak season begins.”
According to VietnamBiz.vn
