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HIGH FREIGHT RATE CONTINUE TILL FEBRUARY. EAST ASIA-SOUTH AMERICAN FREIGHT RATE SOARED BY 213%

Time:2020-12-21 Publisher:Bridge Num:3289

At present, the foreign epidemic situation is rebounding strongly. The United States has set a record of 400,000 confirmed diagnoses in a single day. Germany and the United Kingdom have successively closed cities. Port congestion and shortage of containers have further intensified. High freight rates are experiencing 10,000, 13,500, and 16,000 US dollars and continue to rise; global shipping , Trade continues to be under pressure!

A few days ago, freight forwarders and carriers said that the surge in demand for freight from Asia to the east coast of South America will keep container freight rates at a record high until at least February next year. Port congestion and severe container shortage are still bottlenecks. The South American freight forwarder has received a quotation of about US$10,000 from China to the South American East ECSA port in January.

As a result, some freight forwarders and shippers are being charged extra fees to ensure the supply of containers, while Hapag-Lloyd uses unplugged reefer containers as dry containers to alleviate equipment shortages.

According to the Shanghai Container Freight Index, the average spot freight rate from Shanghai to South America is US$6,256/FEU. The rate increased by approximately 213% year-on-year.

Brazilian freight forwarders are also facing the problem of rolled, which will increase the delivery time of goods by one month, while Brazilian importers are delaying orders due to economic uncertainty caused by the new crown pneumonia pandemic.

"Our Chinese agents told us that they expect the freight per FEU to be around US$8,000-9,000 in the weeks leading up to the Spring Festival holiday in February," said Mauricio Fisch, director of Brazilian freight forwarding and non-vessel carrier Ocean Express. Ocean Express is the only member in Brazil of the HTFN Multimodal Transport Logistics Association based in the United States. To

"The COVID-19 pandemic has had a very critical impact on China's full container (FCL) exports to Brazil. Mauricio Fisch said: "The freight rate in June and July was less than US$1,000, but it reached 6000 in early December. Above USD. "He added: "We have received an offer of more than $7,000/FEU at the end of December. "

Freight rates on the main trade routes from Shanghai to Santos are even higher. "The market is developing very rapidly. We have issued quotations to some customers. The quotations from Yantian (Shenzhen) to Rio Grande Port in Brazil are approximately US$7,500-7,800 per FEU." Mauricio Fisch added. To

Carlos Fuchs, head of Royal Cargo, a freight forwarder based in Itajaí, Brazil, confirmed that the rate for each container in December was US$7,200-7,800. He said: "The January quotation information I received shows that the freight from China to ECSA ports including Santos, Itajai and NAVEGANTES is 10,000 yuan. Around the dollar."

"I think the rate from China and Southeast Asia to ECSA will continue to increase until the Lunar New Year, and then begin to decline due to the decline in transaction volume, although some people believe that the high freight rate will continue at least until March." Carlos Fuchs added Say. He expects that the return freight rate to Asia will start to decline in January.

Crazy surcharge

The freight forwarding company said that the shipping company is adjusting the rate every week and every week. While the general rate is raised, it will increase other expenses such as peak season surcharges. Hapag-Lloyd recently announced that from December 7th, the general freight rate of all containers from East Asia to the east coast of South America will increase by US$550. The carrier said in a customer consultation on Thursday that it will increase the current peak season surcharge to US$500-1,000 per TEU and US$1,450 per 40' container from December 22 to 31.

Peak season surcharge from East Asia to the East Coast of South America

According to current market conditions, Hapag-Lloyd will impose a peak season surcharge (PSS) on all FAK dry containers and freezers from East Asia to the east coast of South America, effective from December 22, 2020 to December 31, 2020 Such as:

USD 1,000 per 20’

USD 1,450 per 40’

"Hapag-Lloyd is not the only shipping company to increase rates. Mauricio Fisch said: "China's various rates are increasing every week. In general, all carriers do the same. "

Freight forwarders and shippers must also pay a deposit to ensure the supply of empty containers in China. Mauricio Fisch said: "In certain specific cases, our agents have reported to us that it is necessary to pay some'extra costs' so that they can guarantee that the box will be picked up within the deadline specified by the carrier," "So far These'costs' are about US$250-300 per container."

Although these costs ensure the supply of boxes, they cannot prevent the goods from being rolled. Mauricio Fisch said: "Last week, we encountered a situation where the carrier changed the original transshipment port of the cargo to another transshipment port in the Mediterranean, which will increase the estimated transit time to Brazil by three to four weeks."

However, some shipping companies believe that rates will remain relatively stable, rather than continue to climb. A South American trade route container shipping executive said: “The short-term rate is currently at US$6,000 per 40-foot high container, and it will stabilize at this level at least until mid-February or the end of the month.”

The executive said: “Demand is still very high, therefore, ships leaving Asia have been fully utilized.” “Such high demand is expected to continue until the end of February. However, how the volume will develop from March is still It remains to be seen. This is still uncertain."

Due to the impact of COVID-19, Brazilian importers have postponed their orders in China, waiting for the prospects of the Brazilian domestic market to become clearer, which contributed to the surge in imports in the later period.

A few days ago, freight forwarders and carriers said that the surge in demand for freight from Asia to the east coast of South America will keep container freight rates at a record high until at least February next year.

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