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Sea Freight goes down in August, Rise again from October in 2022

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Sea Freight goes down in August, Rise again from October in 2022


Sea Freight goes down in August,  Rise again from October in 2022

Global are suffering high freight in the past 2 years because of COVID-19 epidemic.   Many ports closed for epidemic,  Many port workers stay home which caused many Sea shipping crisis in worldwide.  All these bad news which cause the sea freight boost quickly in short time.   It is nearly 5-6 times higher than regular year's freight quote.   It hits the purchasor and importer company's oversea order plan badly from 2020-2022.   

Good news is that global market are recovery from crisis in 2022.   The workers are go back to the office,   the ports are running well and are solving the port congestion problem.

The continuous decline of international freight rates is also beneficial to the next foreign trade shipments to a certain extent, but it also reflects the indisputable fact that the global market is weak.
According to the data released by the Shanghai Shipping Exchange, on August 5, 2022, the Shanghai Export Containerized Freight Index was 3739.72, down 148.13 from the previous period, with a weekly decrease of 3.8%, an increase of 1.02 percentage points from the previous period. It was the eighth straight week of declines for the index, hitting its lowest level since last July.

The view that the industry is generally bullish on freight rates before or that it will continue to oscillate at a high level has also changed.
"One cabin is hard to find" is no longer available, and freight rates continue to decline
"The market is out of stock, and now shipping companies are scrambling for goods and price competition."

According to the China Export Container Freight Index, in July 2022, the indices for the Mediterranean, US-West, US-East and Japan routes decreased by 2.8%, 3.5%, 1.8% and 1.9% respectively from the previous month.

According to the FBX Global Container Freight Index launched by the Baltic Shipping Exchange and Freighto, as of August 3, 2022, the shipping price from China/East Asia to the West Coast of North America was $6,632/FEU (40-foot equivalent container), while China/East Asia to North America The shipping price from the east coast is $9,885/FEU; the shipping price from China/East Asia to Northern Europe is $10,463/FEU, and the shipping price from China/East Asia to the Mediterranean Sea is $10,649/FEU.

Among them, since May 20, 2022, the shipping price from China/East Asia to the West Coast of North America after a rebound has dropped from US$13,698/FEU to US$6,632/FEU, a drop of more than 50%

"The price changes rapidly during this time, and the prices at different ports are also different." Li Lin said that the European route was affected by the port strike, and the price is still relatively high recently. The price of Southeast Asia routes has dropped from the highest of more than 2,000 US dollars to more than 600 US dollars or even lower, basically returning to the state before the epidemic.
The global market is weak, and foreign trade is showing differentiation

In Li Lin's view, the current dullness is mainly due to the fact that these few months are not the peak shipping season. In addition to the impact of the previous epidemic, orders have been reduced in the second quarter, and today's demand for shipments is even less. With the arrival of the peak shipment season after September, this situation is expected to change.

We also believes that if there is no special change, the freight rate is expected to fall by about 10% to 15% this year, and the demand for the Thanksgiving and Christmas seasons in Europe and the United States will still exist in the fourth quarter, and the downward pressure will be eased.

In the next 2 months,  August to September-2022 which will be a good chance to purchase from oversea.

Welcome to order the wet wipes with private label service in the next months.

The freight will gose up because of the hot purchase season caused by Christmas and thanksgiving holiday.

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