The Shanghai Shipping Exchange's China Export Container Freight Index (CCFI) showed that the Red (Persian Gulf and Red Sea) routes contributed the biggest increase, with the freight index up 11.8% from last week, followed by South American routes with a 9.5% increase.
For the four major routes from the Far East to Europe, the Mediterranean, the West and the East of the United States, the freight rate of the Europe line was stable and basically flat, while the Mediterranean route rose slightly, while the route from the Far East to North America showed a slight decline.
The surge in freight rates in the Persian Gulf is clearly related to geopolitical instability in the Middle East, with three weeks posting double-digit growth in South America, driven by stronger orders in emerging markets.
Kang Shuchun, president of the International Freight forwarder Branch, told the 21st Century Business Herald that the fierce price rise of South American routes is to some extent related to the reduction of inventory after the epidemic and the need for replenishment in the Latin American market.
The heat of the South American market is reflected in the earlier import and export data.
According to the Data center of the Ministry of Commerce, China's imports and exports to Brazil and Mexico saw double-digit growth of 33.3 percent and 18.9 percent, respectively, compared to the previous year.
Wang Zhen, deputy director of the Regional Development Planning Institute of the China (Shenzhen) Comprehensive Development Research Institute, said that Brazil, Mexico and other emerging markets, as countries with large populations, are becoming an important springboard for Chinese commodities to expand the South and North American markets with the help of regional free trade agreements.
In fact, the price increase is not only the South America, wave red routes.
Recently, a number of shipping companies have issued price increases notice, a number of major routes will usher in price increases.
From May, shipping companies including MSC, Maersk, Dey, COSCO, Herberrot, HMM and so on will continue to adjust the rates involved in Europe, the Mediterranean and North America.
If the big ship companies successfully implement the comprehensive rate surcharge (GRI) price increase plan in May, the expected freight rate increase will be at least 30%, and the increase of the eastern route will be more than 23%.
On the one hand, the demand for inventory replenishment increases, giving ship companies the confidence to raise prices.
On the other hand, geopolitical situations will push up transportation costs, and shipping companies will seek to raise prices to ease the cost pressure.
