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freight bill seriesfall cancel main air line 10%
2022/5/23 17:50:00

Freight rates fell continuously! Demand is falling! Cancel 58 Major League flights! Cancellation rate of main routes: 10%

Recently, the demand of the global centralized transportation market has been affected by the closure of the city by the epidemic, the logistics supply chain has been in chaos, the overall volume of goods has decreased, and the changes of the global epidemic continue to affect the logistics supply chain. "Supply exceeds demand". In order to keep the high freight rate, shipping companies haveshot to cancel some flights and increase blank flights to maintain the freight rate.

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The three major leagues cancelled 58 voyages! Cancellation rate of main routes: 10%


According to the latest data released by Drury on the 20th, in the next five weeks (weeks 21-25), the three major shipping alliances in the world have cancelled 58 voyages in total. The alliance has announced the cancellation of 20 voyages, followed by 2M and ocean alliance, with 23 and 15 voyages cancelled respectively.

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Among the 742 scheduled voyages on major routes such as trans Pacific, trans Atlantic and Asia northern Europe and Mediterranean, 73 voyages were announced to be cancelled from week 21 to week 25, with a cancellation rate of 10%. During this period, 71% of the blank flights will take place on the trans Pacific eastbound route, mainly to the west coast.

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Drury said that the blockade of Shanghai is expected to end in June and gradually lift the restrictions. The sudden return of China's industrial and general economic activities to near normal levels may have a negative impact on the already overburdened global container distribution system.




Once Shanghai is fully reopened and the Chinese manufacturing engine begins to heat up, the United States and Europe may see a surge in containers from Shanghai. In addition, despite inflationary pressures and China's COVID-19 restrictions, US import demand remained strong in April. If trade remains strong, port congestion in the United States and Europe could worsen significantly, bringing further delays and costs to already troubled shippers.














The volume of foreign trade orders fluctuates, and the loan agent starts a price war


When the shipping space is empty, the freight forwarders are even busier. The important work of the freight forwarder every day is to keep asking about the shipment arrangements of new and old customers. A freight forwarder said, "I have a customer who said he didn't dare to answer when he saw a strange number in Qingdao. I guessed that it was the freight forwarder who could call about 20 a day."






When the supply of shipping space exceeds the demand, freight forwarders also begin to fight a price war, and looting at low prices occurs from time to time. Nevertheless, some freight forwarders said that the recent collection volume decreased by 23% compared with the same period in previous years.


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"The order conversion rate is much lower than that before the Spring Festival, and there is often no following after the price is quoted.", Now I'm busy quoting almost every day, but there are many reasons why the customer can't make the trip in the end, such as waiting for a reply from foreign customers, uncertain trailer, etc.






The freight forwarding business is closely linked with the seller's shipment. In addition to the factors of non shipment, the volume of foreign trade orders also fluctuated. Some foreign customers said that due to the impact of freight and other costs, the price of purchasing from China is almost the same as that they buy in Europe, and the local purchase does not need to wait too long, nor will it be affected by the shipping price.






A freight forwarder said, "there are many links in foreign trade. Sea freight is only one link, and the overall foreign trade environment is not very good."

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According to the Shanghai export container comprehensive freight rate index released by Shanghai Shipping Exchange on May 20, it was 4162.69 points, up 0.4% from the previous period, and finally ended its 19 week continuous decline. Many analysts now say that the peak season, coupled with the reopening of Shanghai, may see a rebound in freight rates.




According to the latest data of the customs, since late April, the freight volume and total import and export value of Shanghai port have gradually rebounded, and the port foreign trade has gradually stabilized. Since May, 9000 export origin visa applications have been approved, with a value of more than US $700 million, an increase of 36% and 57% respectively over the same period in April. There are obvious signs of export recovery.

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Here's a reminder that many enterprises in Shanghai have gradually entered the stage of resumption of work recently. With the subsequent gradual unsealing, the volume of goods collected and transported is expected to rise rapidly from May, and a wave of rush for space may emerge in the backlog of goods. We reasonably arrange the shipment, inform in advance and arrange the booking, and have expectations and preparations for the subsequent phenomena. Forward Zhouzhi~

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