As China’s Golden Week approaches, shipping companies are gearing up for significant capacity adjustments and an increased number of voyage suspensions. With less than a month to go until the holiday season, it is estimated that the cancellation rate for East-West trade routes over the next five weeks will hover around 7%.
Maersk Line has announced its plans to adjust its sailing schedules during China’s Golden Week due to expected decreased demand during the holiday period. The following services will be temporarily canceled:
Asia-Northern Europe Swan Loop: MSC will suspend its independent operations of the Asia-Northern Europe Swan Loop for six consecutive weeks from mid-October, spanning from Week 37 to Week 42.
Asia-Mediterranean Dragon Service: Three sailings for Weeks 39, 40, and 41 on the Asia-Mediterranean Dragon Service will also be canceled.
The Shanghai Shipping Exchange’s latest Shanghai Export Container Comprehensive Freight Index stands at 1033.67 points, indicating a 2.0% increase from the previous period. Despite the undersupply of European transport demand, shipping companies are opting for reduced pricing strategies, leading to a continued drop in European shipping rates.
European Routes: As of September 1st, the freight rate (including shipping and surcharges) from Shanghai Port to the European base port market is $768 per TEU, marking a 4.2% decrease from the previous period. Market conditions on the Mediterranean route closely mirror those of European routes, with immediate booking prices continuing their descent. As of September 1st, the freight rate from Shanghai Port to the Mediterranean base port market is $1364 per TEU, down 6.3% from the previous period.
North American Routes: As of September 1st, the freight rate (including shipping and surcharges) from Shanghai Port to the U.S. West and East Coast base port markets is $2136 per FEU and $3132 per FEU, respectively. These rates represent a 6.5% and 2.6% increase, respectively, from the previous period.
Persian Gulf Route: The recent steady improvement in transportation demand, coupled with a favorable supply-demand balance, continues to drive market rate increases. As of September 1st, the freight rate from Shanghai Port to the Persian Gulf base port market is $962 per TEU, reflecting a 5.3% increase from the previous period.
Australia-New Zealand Route: As of September 1st, the freight rate from Shanghai Port to the Australia-New Zealand base port market is $588 per TEU, marking a significant 13.1% increase from the previous period.
South American Route: As of September 1st, the freight rate from Shanghai Port to the South American base port market is $2055 per TEU, representing a 2.5% decrease from the previous period.
Japan Route: With stable transportation demand, the market rate on the China to Japan route has experienced a slight decline. As of September 1st, the China to Japan route’s freight rate index stands at 771.98 points.
As China’s Golden Week approaches, these service adjustments and rate fluctuations highlight the dynamic nature of the shipping industry. Shipping companies remain vigilant and adaptable to meet the changing demands of global trade.
