During the rapid soared of the shipping cost in 2021, no one expected that the shipping would usher in such a big change at the end of 2022. Nowadays, with the freight prices falling for several months. There are some of the quotation has been below cost price on the market. Meanwhile, the downward trend of freight rates still doesn’t have any reversing.

According to the weekly report on China’s export container shipping market released by the Shanghai Shipping Exchange on November 4, the Shanghai Export Container Freight Index SCFI has fallen to 1579.21 points, down 7% from the previous period. European and American routes are the most important routes in the global shipping market, they are also the routes that have seen a significant decline in this year. Especially the US-West route. As one of the busiest routes in the world, the freight rate in the past two years can be described as a roller coaster ride.

Shipping Cost PLUMMET, Catch The Best Procurement Time

The latest Ningbo Export Containerized Freight Index (NCFI) of Ningbo Shipping Exchange closed at 1193.5 points, down 9.6% from last week. And the freight rates of 21 routes all fell.Besides, from the perspective of the overall level in October, the average value of the index is only at 1391 points, a month-on-month decrease of 20.8%, and a year-on-year decrease of 65.7%.

Compared to last year, the sea freight has risen the most fiercely, some of the container offer has been even up to 30,000 US dollars, many foreign buyers even had to give up their orders because they didn’t get the shipping space or the freight price was too higher than the commodity prices.

The report by Chief Information Officer Xu Kai from Shanghai International Shipping Institute (SISI). he mentioned that according to the data from ports and shipping. It is show that there is about 30% of global container ships were at berth in the third season of last year. And the proportion dropped to about 26% in the same period of this year. Which means that the global shipping turnover capacity has increased. On the other hand, the demand for shipping capacity in global commodity trade has declined. That’s why the lower freight rates are inevitable.