Will the crazy sea freight price end?
2022-03-22   Christine

YEPBOX, as a trading company mainly for industrial technical products, has been affected by the dramatic increase in ocean freight rates for certain low value business in the past few years, and has been greatly hit by the fact that ocean freight rates are higher than the value of the goods, and many customers have had to cancel their orders.


However, some recent information tells us that the era of crazy freight rates is about to end. In the past two years, the sea container freight once every day soaring, but on the contrary, this year, the freight index SCFI but all the way down 21.7%. Now the supply and demand changed, the future will repeat the scene of the 2009 market crash? A large number of new ships are put into the market, will be greatly influence to the decline of the freight rates


The past two years, the global shipping liners once due to the epidemic, earn a lot of money, a very large number of foreign trade enterprises, can only sigh and suffer significant losses.


From the supply and demand point of view, on the one hand, shipping companies to build new ships, the next three years will be a significant increase in the supply of capacity; on the other hand, it is the European and American inflation suppressed consumption, freight demand will be weaken.


Since the beginning of the year, the Shanghai Export Container Freight Index (SCFI), no longer as last year's explosive rise, but also from the high point all the way down 21.7%, the 22nd has fallen below the 4,000-point mark back down to 3,996.77 points, the 29th the latest index is a significant drop of 108.92 points to show 3887.85 points.


Another freight forwarding industry commonly used freight indicators FBX (Baltic container freight index) is also the case. From a height of $ 9,167 / TEU at the beginning of the year to only $ 6,343 / TEU today, a decline of up to 30.8%.


 Look forward to an era of low shipping rates. Low freight rates will greatly help the recovery of our foreign trade industry.