Sea freight rates are expected to drop significantly

At the beginning of the year, transpacific rates increased with an increase in demand post Lunar New Year. However, with the normalization of global epidemic prevention, the response measures of various ports have become more complete, and the shipping capacity has been greatly restored.

Demand has fallen sharply. In addition, the first half of the year is the off-season for the market. Therefore, since the beginning of this year, the shipping price has dropped. Plus, the market is generally not optimistic about consumption in the second half of the year. Due to the mainstream market demand in Europe and the United States being sluggish, it is difficult to say how much improvement will be brought to the peak consumption season in the second half of the year.

Data shows that in January this year, the price of a 40-foot container on the route from China to the US west coast was about $10,000 USD, and in August the price was about $4,000 USD, which means a 60% drop. Compared with the average price of $20,000 USD, which was the highest point last year, the dropping rate is over 80%. The market of Thailand-Vietnam route in Southeast Asia fluctuates greatly. Due to the large gap in freight demand on the route, it fell by 37.1% in a single week. The spot market booking price dropped sharply, and there was even a small amount of zero freight and negative freight.