The freight rate index from Shanghai to Europe fell by 28%
The freight rate index on the route Shanghai-Northern Europe shows a drop. For two months the Drewry WCI indicator fell by 28% and the dynamics are not changing yet. It has already crossed the line of 10 thousand dollars per 40-foot container and continues to decline. This route is in first place for losses, with second place going to freight rates from Shanghai to Los Angeles. Here values sagged by 21%. The composite index showed a drop of 20%.
In the hope of holding on to freight prices, carriers are going to cancel flights. According to the resource Freightos, three major logistics companies have already announced the cancellation of previously planned flights. About 30% of shipments from Asia are on pause. For example, The Alliance Company refused to operate 33% of its planned flights from the region, Ocean Alliance canceled 37%, and Maersk cut 39% of its traffic.
It should be noted that since March there has been a decrease in shipments from the ports. The port of Shanghai was quarantined due to a new wave of coronavirus, but all operations were carried out as standard. At the same time, many factories suspended operations and shipments dropped significantly. Logistical difficulties and supply chain disruptions exacerbated the situation. The problems have led to a 12% reduction in container turnover in the port of Shanghai, amounting to 3.085 million TEU. Compared to the pre-summer period, the indicators have dropped by 15%.
Analysts predict that the situation in the port may stabilize, but it will take 4-8 weeks.
The situation in Shanghai had a positive effect on Ningbo-Zhoushan port, which is the largest in the global segment. After quarantine measures were imposed in Shanghai, container turnover in Ningbo-Zhoushan reached a record high of 3 million TEUs. This result is 10% higher than that seen last year and 12% higher than the previous month.
Last year, cargo turnover in Ningbo-Zhoushan was about 1.2 billion tons, the highest in the world. In terms of container turnover, it is in third place, with a total of 31 million TEUs handled.
Until recently, the port of Shanghai was the leader in container turnover, but the quarantine has reduced its position. Many logistics operators had to urgently distribute cargo from Shanghai to nearby cities in order to minimize downtime. However, such processes have not been successful for everyone, and there are now queues of hundreds of containers that cannot get close to the berth to dock for staging.
