According to Bloomberg, a shipping industry index shows that freight rates from Asia to Europe have jumped to more than $ 10,000. The losses of importers and exporters are increasing day by day.
The World Container Index published by consulting firm Drewry on May 27 showed that the ocean freight rate for a 400-foot container from Shanghai (China) to Rotterdam (Netherlands) touched $ 10,174, an increase. 3.1% from the previous week and a jump of 485% over the same period last year.
Compared to the previous week, the composite index of eight major sea lanes increased 2% to $6,257. Compared to the same period last year, this index grew by 293%. Both indexes are at their highest levels since 2011, Drewry noted.
In the US and other regions, many freight carriers spend more than $10,000 per container on the spot market, which typically already has to pay hefty surcharges to ensure delivery or delivery. unload on time.
According to the explanation of Bloomberg, ocean freight rates skyrocketed as demand outstrips the market’s capacity to supply 20- and 40-foot containers.
In the context of a sharp increase in consumer shopping demand and business storage needs, disruptions to the shipping industry, from the incident of a super ship that ran aground in the Suez Canal in March to congestion at seaports are creating big delays and pushing up freight rates. The shipping lines thus enjoy extremely high profits.
Also on May 27, Michael O’Sullivan – CEO of clothing retailer Burlington Stores (based in the US), said that “supply chain and freight difficulties are continuing to worsen, may affect the company’s operating profit margin this year.”
Meanwhile, shares of AP Moller-Maersk, the world’s largest ocean carrier, hit a record high earlier this week. ZIM Integrated Shipping Services, an Israeli shipping line, listed at the end of January and the share value has now more than tripled from its IPO price of $15 per share.
In mid-May, the Baltic Dry Index hit a decade-high, up more than 700 percent since April last year. Baltic Dry Index is an index published daily by the Baltic Exchange (based in London, UK) to track ocean freight rates for raw material commodities such as iron ore, coal, cement, grain …
According to investment bank Platou Securities, the largest vessels (the largest with an average gross tonnage of 180,000 tons) are costing about $41,500 a day if businesses hire them immediately. This is almost double from a month ago and almost eight times the 2020 average.
“China’s unprecedented demand for iron ore is the biggest driver,” said Ulrik Uhrenfeldt Andersen, CEO of Golden Ocean, a large vessel supply company.
According to VietnamBiz
