With the sharp rise of the Red Sea crisis, the international shipping freight rate is obvious, which has caused the brunt of the impact on the Asia-Europe route. According to reports, the average freight rate of a 40-foot container has climbed to $4,000-5,000, a sharp increase of 1 percent from the base rate5 times. At the same time, the weekly increase in the 20-foot container freight rate of the Middle East route also reached 257%。
Freight rate query Source: Souhang.com.
This sudden increase in freight rates** has put enormous pressure on those who urgently need to ship and add value before the Lunar New Year.
In order to cope with this challenge, some shippers are starting to consider switching from sea-to-sea to land-sea or sea-to-air. According to freight forwarding industry insiders, air freight from China to Northern Europe** began to climb last week, with an increase of about 10%, while the freight rate of the China-Europe railway also increased by about $500.
China-Europe freight rate query Source: Souhang.com.
Industry insiders said that if the freight rate continues, shippers are bound to pass on the high transportation costs to end consumers, which may further push up inflation.
Xie Zhijian, former chairman of Yang Ming, pointed out that to observe the increase and continuity of the sharp rise in freight rates, we need to start from four aspects:
The first is when the US-led convoy will be able to effectively protect the fleet;
The second is the imbalance between supply and demand of detour space when it has not been effectively protected;
Third, if the supply of capacity is still greater than the demand, the sharp rise in freight rates should be a short-term phenomenon
Fourth, once the war is extended or expanded, I am afraid that more variables will be generated, making the market outlook more uncertain.
Source: CCTV News In this regard, Souhang.com convened the god of prophecy on the whole network, do you thinkWill the US-led OPG plan Red Sea escort alleviate the crisis and solve the situation of tight capacity and skyrocketing shipping space?In addition,In the current situation where there are three options for ships to detour to the Cape of Good Hope, Operation Prosperity Guardian (OPG) plan, and China-Europe trains, how will you choose the delivery channel?