Shanghai reopened after two months of lockdown. From June 1, normal production and shipping activities will resume, but it is expected to take several weeks of recovery. Combining the latest major shipping indexes, SCFI and NCFI indexes all stopped falling and returned to orders, with a slight increase for almost 4 consecutive weeks. The trend of freight rates on different routes is differentiated, and European and American routes continue to decline; South America, Australia, New Zealand, Southeast Asia, and the Middle East have increased significantly.; The major WCI airline indices remain stable, the US route has a downward trend, and the European Ground route has been relatively stable in recent weeks; the FBX global composite average index has continued to decline since March 11. It is particularly worth noting that the US route, except for a few weeks. In addition to slight fluctuations, the overall situation is in a downward trend. The European and Mediterranean routes have been stable and rose slightly in the past 5 weeks.

According to the latest data from Drewry, there will be approximately 760 scheduled sailings from weeks 24 to 28 (June 13 to July 17) on major routes such as the Trans-Pacific, Trans-Atlantic, Asia-Nordic and Asia-Mediterranean. 75 voyages have been cancelled, and the world’s three major shipping alliances have successively cancelled a total of 54 voyages. Among them, the most cancelled voyages are 2M alliance with 27 voyages; THE alliance with 20 voyages; the fewest with 7 voyages cancelled by the Ocean Alliance; 75% of which are on the trans-Pacific eastbound route, mainly to the west of the United States.

The Drewry Composite Average WCI fell 0.6% to $7,578.65/FEU for the current period, but was still 13% higher than the same period in 2021.

l  Shanghai-Los Angeles  and Shanghai-New York  rates both fell 1% to $8,613/FEU and $10,722, respectively.

l  The Shanghai-Genoa  spot rate fell 2% or $191 to $11,485/FEU.

l  Shanghai-Rotterdam  freight up 1% to $9,799/FEU

Shippers operating in the trans-Pacific trade should brace for a new round of disruption, as the U.S.-West labor negotiations are likely to coincide with a surge in shipments from China. While it is unclear whether an agreement will be reached before the contract expires on July 1, there is a risk that negotiations could take months to reach a conclusion….

European routes: Affected by the epidemic and the conflict between Russia and Ukraine, the future economic recovery in Europe will face the dual tests of high inflation and energy crisis. At present, the transportation market continues to remain stable, and the market freight rate drops slightly. In the latest issue, the freight rate (shipping and shipping surcharges) for exports from Shanghai Port to the European base port market was US$5,843/TEU, down 0.2% from the previous issue. For the Mediterranean route, the spot market booking price dropped slightly. In the latest issue, the freight rate (shipping and shipping surcharges) for exports from Shanghai Port to the Mediterranean base port market was US$6,557/TEU, down 0.2% from the previous issue.

North American routes: The epidemic will still seriously drag on the US economic recovery, the inflation level remains high, and the US economy is facing a situation of stagflation. Last week, the transportation demand remained stable, the fundamentals of supply and demand were balanced, and the market freight rate continued to fall. On June 10, the freight rates (shipping and shipping surcharges) of the latest Shanghai port exports to the US West and US East base ports were US$7,630/FEU and US$10,098/FEU, down 1.0% and 1.3% from the previous issue respectively.

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