In order to meet the transportation demand in peak season, airlines have gradually increased the supply of capacity on some routes, but the overall tightness of market capacity has not yet improved. Due to the good fundamentals, the freight rates of most routes continue to increase, and while space is difficult to find, the shortage of containers is becoming more and more intense!

As freight rates continue to rise, booking space becomes even more difficult. During November and even until the end of October, it will be difficult to find one cabin for European routes, American routes, and Japanese routes. It may still not be able to pack smoothly.

South American route

With the continuous increase of freight rates on South American routes, booking space and lack of containers have become more and more tense! Although some production activities have been affected to varying degrees under the epidemic, the demand for various materials in various countries of South American route destinations has continued to grow, which will promote the rapid increase in market volume during the peak season.

On August 28, the market freight rate (sea and ocean surcharges) for exports from Shanghai to South America's basic ports was 1878 US dollars/TEU, an increase of 37.4% from the previous period. The market freight rate has increased for six consecutive weeks, with a cumulative increase of 275.6%.

South America will be hard to find a cabin before November or even the end of October, and freight rates are increasing.

The reason is as follows

01

Domestic exports have increased steadily. Due to the shrinking imports of foreign countries, there is a shortage of export containers;

02

Maersk was detained on August 16 when the Mexico/Panama/South American nonstop ship called at Ningbo Port because of the detection of new crowns among three crew members.

03

The epidemic has caused people at home to pay more attention to Christmas and pray for safety. It is the peak season for Christmas items.

04

The old ship needs to transform the desulfurization tower, and the new ship has not been launched yet.

06

Because the new crown has closed the border, international crews cannot travel freely, resulting in a shortage of crews.

To sum up many factors, the freight rate in South America will hit a record high. The larger the freight, the more difficult it is to get out. On the contrary, one or two cabinets are easier to get the space. This situation will intensify before November, and the surge in freight costs will cause the low value of goods in the north to suspend or reduce shipments, or even change to bulk cargo.