Sea freight rates have fallen

Sea freight rates have fallen to levels of three years ago

At present, the sea freight quotation obtained from the shipping company shows that the eastern line from China to the United States is about 6,000 dollars, and the western line is 2,300 dollars. Basic ports in Europe cost $4,700. With last year to the east line of the United States, a high cabinet in close to $20,000, the price reduction is obvious, reduced more than half of the cost.

Sea freight dropped sharply, continued to shrink. The main reason is the imbalance between supply and demand.

This year, due to the lingering effects of the COVID-19 pandemic and the war between Russia and Ukraine, consumer demand shrank and commodity supply was oversupplied. Shipping companies added more shipping routes and increased the number of ships due to last year’s increase in freight rates.

Although the sea freight has dropped, there is no increase in goods on the dock. Now the whole Chinese market is facing shortages.

There has been no apparent increase in orders. According to the Liuzhou Yiweisi company, this year’s export volume shoe trees is only 15 percent higher than the same period last year. July-september is the peak season for customer purchasing, but we have not seen the peak season coming. The peak season is not prosperous, the off-season is not light market conditions.

Can only wait for customer inventory gradually small, consumer confidence to recover, the market can be a step closer to the supply and demand relationship.