Why Do Sea Freight Prices Soar

The price increase for all routes at this time mainly started in South America. The main reason for the price increase in South America is that Brazil will impose additional tariffs on Chinese new energy vehicles in July and beyond. BYD is planning to build a factory in Brazil and is expected to ship 20,000 containers, resulting in shipping capacity. Not enough, COSCO withdrew its ships from West Africa and moved to South America, which led to a general increase in West Africa! In addition, the US election announced that it would impose 50-60% tariffs on China in the future, which in turn led some Chinese companies to increase their investment in South America! European cargo volume was relatively stable, but due to the impact of the Houthis Red Sea crisis, the shipping schedule is long, resulting in an increase in the number of ships that need to be operated, which will also cause a relative shortage of shipping capacity. In summary, the objective factors, and the subjective tacit understanding of ship owners to join forces to increase prices are also a relatively big factor this time! Based on empirical judgment and the current future price trends of some shipping companies:
1 The price increase trend in South America is expected to continue until early June (expected to be 6,000 for a large container in Mexico and 8,000 in Brazil)
2. The Middle East is relatively stable. It is a bit difficult to reduce prices. There is currently resistance to price increases. They may decrease slightly or be maintained.
3 European shipping companies have a strong willingness to increase prices and are supported by a small amount of cargo volume. Shipping companies have 2-3 ships that do not come every month, which has a great impact. CMA has two ships that do not go to Hamburg, making it difficult to find Hamburg positions recently. It is expected that there will be no increase in June. In late May, large container 50004 is expected to rise slightly in Southeast Asia. The increase is expected to be 50 US dollars per week. 5 Africa is affected by the reduction in shipping capacity and the impression that shipping companies are generally increasing. East Africa is expected to be about 3500-4000.
Strategy: If you really have a plan, you can consider taking up a few positions appropriately, and also pay attention to the changes in the designated cargo. Slow release of the designated cargo means that the position is really tight. In this case, you have to plan in advance! You can also get closer to the ship before departure. There may also be relatively cheap positions if you pick up missed positions in about 5 days. Jingtai factory mainly produces galvanized steel coils, galvalume steel coils, color-coated steel coils, metal tiles and other products. If you have needs, please contact us, I provide high-quality products and high-quality prices.