Current Situation of The Shipping Market

      Core tip: According to the Shipping Industry Network, the Drewry World Container Index (WCI) (as of July 25th) fell 2% on a week over week basis to $5806 FEU. Compared to the same period last year, it has increased by 268%; This is 309% higher than the average FEU of $1420 before the 2019 pandemic.

      According to the shipping industry website, the Drewry World Container Index (WCI) (as of July 25th) fell 2% on a weekly basis to $5806/FEU.

      Compared to the same period last year, it has increased by 268%; Compared to the pre pandemic average of $1420/FEU in 2019, it is 309% higher.

  

      Since May, WCI has risen by "+1%,+16%,+11%,+16%,+4%,+12%,+2%,+7%,+4%,+10%,+1%,+1%, and -2%" respectively.

       As of July 25th, the average comprehensive freight rate for this year is $3886/FEU, which is $1108 higher than the 10-year average freight rate of $2777/FEU.

Among them, the freight rate between New York and Rotterdam increased by 4% to $736/FEU.

Rotterdam New York also rose 1% to $1954/FEU.

The freight rate between Los Angeles and Shanghai has increased by 1% to $706/FEU.

The freight rate between Shanghai and Los Angeles has decreased by 5% to $6934/FEU.

The freight rate between Shanghai and New York fell by 4% to $9213/FEU.

The price of Shanghai Genoa slightly decreased by 1% to $7645/FEU.

      The freight rates between Shanghai and Rotterdam are the same as those between Rotterdam and Shanghai, at $8260/FEU and $627/FEU respectively.

      Drewry believes that spot freight rates have peaked, but ongoing shipping disruptions will keep spot freight rates high for a period of time.

      According to Alphaliner's data, except for Yangming Shipping, the capacity of top shipping companies has increased in the first half of 2024.

      Among them, Mediterranean Shipping (MSC) is in a leading position, with its fleet increasing by about 400000 TEUs since January, a growth of 7.1%, surpassing the 6 million TEU mark.

Meanwhile, MSC and CMA CGM have orders of approximately 1.2 million TEUs for this year and next year.

Maersk, Dafei Group, and COSCO Shipping increased by 5.6%, 4.9%, and 6.2% respectively.

The fifth ranked German company, Hapag Lloyd, achieved a growth rate of 10.6%.

      Alphaliner pointed out that Da Fei Group is "very likely" to surpass Maersk as the second largest shipping company in the next two to three years.

      At the same time, the peak of spot freight rates has also begun to affect the charter market. VHBS pointed out that shipping companies are becoming increasingly cautious in negotiations with shipowners.

VHBS director Alexander Geisler said that considering the softening of spot freight rates, this caution is reasonable.

The continuous delivery of new shipbuilding is slowly eroding the current strong fundamentals of the market.

      Considering the early start of this year's peak season, the decline in demand for goods may come earlier than expected, and the delivery of a large number of new ships will test the resilience of the market

      He added, 'By the end of this year, over 1.3 million TEUs of new ships will be delivered, and there will be another 2 million TEUs in 2025. Shipowners and shipping companies may face some turbulent periods in the future.'.

This news is excerpted from the International Ship Network. DEYUAN MARINE Hope it will be helpful to you