Impacted by strong Chinese demand and congestion, container shipping companies are actively adjusting freight rates in the Asian domestic market, with peak season fares varying from $100 to $1,000 per TEU. According to shipping companies and freight agents, shipping prices on most Asian routes fell in October, mainly due to factory shutdowns or production cuts in China's Golden Week and other Asian holidays. However, in the past two weeks, freight prices have risen rapidly. Tiffany Chan, Asia Purchasing Manager at FIBS Logistics, told Business Journal that reduced flights, coupled with high demand after the holidays, made the overall freight price increase (GRI) a success, with a shortage of seats in October. For example, instant shipping rates from China to Dubai rose from $700 per FEU in early October to about $1,200 today.
Freight agency data show that the average immediate shipping rate from China to India has increased three to four times over the past month, and Shanghai to Nawashua and Mundra on the Indian west coast has now risen to $1,800 and $2,100, respectively, from $500 and $600 per TEU in early September. However, the Druia Asia Inland Container Index reflected a different trend from freight forwarders reporting the week of October 15, which fell 15% to $500 per FEU. Stijn Rubens, senior consultant at Supply Chain Consulting in Drury, pointed out that of the 28 routes covered by the index, only two showed gains.
Factors such as typhoons have led to port congestion and lack of capacity. Recent typhoons have severely disrupted port operations in southern, eastern China and Vietnam, Korea and Japan, causing significant delays in shipping. Delta cruise ship said Thursday that port operations were slowed due to Typhoon Trami in the Philippines. Several freight agents pointed out that the rise in freight rates was related to the surge in intra-Asian air traffic in September, increased cargo pressure and the peak demand in India during the festive season. India's head of logistics at Larsen & Toubro said that sea level pressure in Indian ports is increasing again. “We learned that due to the decrease in cargo volume, the number of ships in China has been reduced.”
Freight agents pointed out that several carriers are redeploying some China-India trade and Middle East routes, leaving India and the Asia-Pacific region struggling. Despite the fact that the October holidays have not yet started, freight rates within Asia have been gradually climbing. Hai Fung International's average revenue per standard box in the third quarter rose to $691 from $632 in the first half of the year, according to documents filed with the Hong Kong Stock Exchange on Wednesday. If GRI and other surcharges are implemented smoothly, prices or increase further. For example, CNC Line will ship to Southeast Asia, Japan, Korea and Bangladesh at a cost of $100 per TEU from October 28; Musk plans to add a peak season surcharge of $1,000 to $1,500 per TEU for goods from North Asia to South Asia, such as China, Vietnam, Singapore and the Philippines from November 4 The dollar is not worth it.
