Fares fall as Shanghai prepares for reopening

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Shanghai authorities Set to start the restart process June 1. Meanwhile, manufacturing remained restricted and trans-Pacific ocean tariffs continued to decline. Interest rates on the Asia-US West Coast fell 18% this week to $ 11,455 / FEU, 28% lower than when the blockade began in late March. Prices in Asia-North Europe are only 15% higher than this time last year, about the same level as in June 2021.

Most of the industry Expecting demand to stagnate due to a surge in sea exports When the manufacturing industry in Shanghai rebounds towards a destination port like LA / Long Beach. Also, the congestion level at LA / Long Beach is well below the level seen at the beginning of the year, but it is already important, as there are currently about 30 vessels waiting for berth.

However, US port authorities hope that the lessons learned and adjustments learned over the last two years will reduce the disruption of this next possible wave.For example, the port of LA / Long Beach Reportedly considering long-term penalties Imported containers that are not immediately moved from the container yard.

Many retailers bring in peak season products early to anticipate potential delays like last year. Warehouse space Also, it is already lacking in many places.

At the same time, consumers are shifting away from expensive household items such as furniture and appliances, creating an overstock of some types of merchandise. This trend is another factor that clogs warehouses and threatens to back up inbound containers to ports in the event of a surge in imports.

Important insights:

  • Shanghai authorities will begin the resumption process next week. As manufacturing revives, online exports are expected to surge towards already crowded ports like LA / Long Beach.
  • Ports want lessons learned to mitigate how devastating possible spikes are. However, retailers importing peak season goods early, or overstocking some high-value household goods due to shifts in personal consumption, are running out of warehouse space, boosting imports at the port’s container yard. There is a possibility.
  • When Shanghai reopens, the release of stagnant demand could put upward pressure on container prices. Meanwhile, Asia-US West Coast prices are almost 30% below pre-blockade levels, while Asia-Northern Europe prices are only 15% higher than at this time last year.

Asia-US rates:

  • Asia-US West Coast Prices (FBX01 Daily) It decreased by 18% to $ 11,455 / FEU. This rate is 44% higher than the same period last year.
  • Asia-US East Coast Prices (FBX03 Daily) Was down 9% to $ 14,570 / FEU, 99% higher than last week’s rate.

https://epsnews.com/2022/05/26/freight-rates-decline-as-shanghai-preps-for-reopening/ Fares fall as Shanghai prepares for reopening

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