No Container, No Ship & Port, Rising Price! What Happen?
There have been a lot of things happening recently! The typhoons have been lasting for a while and the peak of the levy of tariffs have not stopped, National Day is coming!
What is more, on the one hand, many Shipping Companies and major Shipping Alliances are busy rising the price and stopping the container; on the other hand, they have annouced the plans to suspend the Port Operation.
Many services have been canceled /paused
Asia-Mediterranean-Europe
© Image | Baidu
According to the reports, not only due to the pressure of rising fuel prices and the losses in the first half of the year, but also the experience of Ship Company in previous years and the bearishness of goods during the holiday, many Shipping Companies and several major Shipping Alliances have announced the plans to suspend the Port Operation!
The Ocean Alliance of COSCO, OOCL, CMA CGM and Evergreen have canceled two voyages of “Asia-Northern Europe”, and plan to cancel two voyages of Mediterranean in October.
2M Alliance, such as Maersk, also announced that will suspend an “Asia-Northern Europe” service at the end of September or early October.
THE Alliance also announced that will suspend two voyages in “Asia-Europe” and “Asia-Mediterranean” for ship repairs and plans to suspend the following voyages during the Golden Week.
© Image | Sofreight
Intra-Asia Service Update – Asia Subcontinent Void Sailings
Increase FAK rates
Some Shipping Companies will also generally increase the freight rate, such as FAK rates, before they start the cancellation of the voyage.
Hapag-Lloyd will charge $1,050/TEU in “Asia-Northern Europe”, $1,375/TEU in the Adriatic, and $1,500/TEU in the Eastern Mediterranean from September 1st.
CMA CGM: In order to maintain its service quality on CIMEX Lines, CMA CGM informs its customers of its Rate Restoration Program for September 2018 as follows:
The price increase is obviously an important part of the Shipping Company’s profitability in the shipping container business.
Many routes and ships across the transpacific have been suspended/cancelled
Some insiders are worried about whether shipping across the transpacific will be affected, but some people think that this kind of worry is too early.
According to the Shanghai Container Freight Index (SCFI), the exchange rate between Shanghai – US West Coast port was set at US$2,126/FEU, US$40 higher than last week. The exchange rate between Shanghai – US East Coast Port was set at US$3,329/FEU, US$12 higher than last week.
Weekly service
BlueWater reported that several major Shipping Alliances are about to suspend or cancel a series of transpacific routes!
These weekly services include:
Maersk/MSC suspend transpacific service.
THE Alliance.
The Ocean Alliance.
APL.
At present, due to the freight is generally delayed, and the implementation of the tariff, it will be a kind of ‘Normal Phenomenon’ to be discarded the container and even to be discarded continuously! So everyone must be mentally prepared!