The major shipping lines have conducted meetings over the past couple of weeks and the below insights have been projected about the market.
We have been informed that the A3S Service used by OOCL/COSCO/ANL has current loading performance of over 93% in August. As of 1 September, it has been reported that OOCL rolled approximately 200-300 TEU/WK in past 3 weeks, COSCO rolled approximately 260 TEU/WK and ANL’s space situation is worse than both OOCL and COSCO. Hamburg-Sud/MSK has advised that their space is already full for the next two weeks but will continue to take bookings from clients. They have advised that they will roll containers to the first sailing of October. Most carriers are taking advantage of the increase by implementing a GRI from 15 October.
Although shipping lines are advising GRI’S of USD500/USD1000, we are expecting figures of USD300/USD600.
Many factories have stopped working or closed their doors due to failed environmental inspections and therefore East China and North China are not performing as well as South China. This has also affected Shanghai/Ningbo/Qingdao in which Qingdao’s freight rate is now much cheaper than Shenzhen. Beijing’s Environmental Special Inspection team have already completed their work in East & North China. It is predicted that it will assist in recovering the loss and therefore space will be a big issue in Shanghai/Ningbo/Qingdao.
To add to this, we are expecting a surge in shipping volume before and after the National Holidays in China and Hong Kong, as well as Korea and Taiwan.
Navia will continue to monitor developments and keep you informed of any further market fluctuations. Please contact your local customer service representative should you require further information.