Freight Rate Increases
- **Continuous Impact of the Red Sea Crisis**: Due to the unresolved situation in the Red Sea region, shipping companies have to take the detour around the Cape of Good Hope,
resulting in increased transportation costs and a significant rise in freight rates for the US-bound market. According to the data from the Shanghai Shipping Exchange on January 12th,
the market freight rates for exports from Shanghai Port to the major ports on the US West Coast increased by 43.2% compared to the previous period,
and those to the major ports on the US East Coast increased by 47.9%.
- **Peak Season Surcharges Imposed by Shipping Companies**: In 2024, major shipping giants such as CMA CGM and Maersk have issued notices of price increases.
From July 1st until further notice, CMA CGM will levy peak season surcharges for shipments from Asia to the United States, with the charges ranging from $2,160 to $3,840 depending on different container types.
Changes in Capacity and Cargo Volume
- **Some Relief in Capacity Tightness but Still Need Attention**: With the entry of new shipping capacity into the Trans-Pacific market, the sharp upward trend of spot freight rates for the US-bound
routes since April has stalled. However, the shipping capacity planned to be deployed from Asia to the US West Coast in July has increased, and shipping companies have launched or
resumed multiple services from Asia to the Northwest Seaport Alliance such as Los Angeles - Long Beach.
- **Reasons for the Surge in Cargo Volume and Doubts about Its Sustainability**: In the first half of 2024, there was a surge in cargo volume for the US-bound routes.
Analysts and major US importers who stand to benefit believe that this was mainly due to logistics considerations, that is, shippers arranged their logistics decisions in advance for the peak season to
avoid risks, rather than being driven by potential demand. It is expected that the US maritime imports will slow down from all major regions in the second half of 2025, but the backlog of demand will keep
the market tight until the third quarter.
Developments in Logistics Enterprises
- **The Impact of the Freight Forwarder's Collapse on Sellers**: In 2024, a major logistics company named OKS in Shenzhen was suspected of running away, which has drawn much attention.
The main problem was that it had a conflict with its Japanese partner, resulting in a large number of goods being detained in Japan and unable to be retrieved. Many Amazon sellers were affected,
with varying losses in the value of their goods. This incident highlights the risks in the freight forwarding industry and the impact on the US-bound logistics chain.
Transportation Timeliness and Services
- **Reduced Difficulty in Picking up Containers Compared to 2021**: According to those who have been engaged in foreign trade for many years, in terms of the US-bound routes,
the difficulty in picking up containers now is much lower than that in 2021. In 2021, it was quite difficult to find containers for pickup on the US-bound routes, but it is relatively easy now.