Securities Daily | Shanghai Freight Transport Welcomes a Cargo Rush, with Popular Routes Seeing Price Increases and Tight Cabins

Wei Li:Container prices for ocean and near-ocean routes have risen to varying degrees recently. The main reasons are: 1) After the resumption of business in Shanghai, cargo transportation demand surged, leading to a shortage of available space. Since June 1st when Shanghai fully resumed normal production and life order, freight volumes at maritime and air ports have continued to recover. Calculated by container throughput, Shanghai Port is one of the busiest ports in the world and also the main channel for goods produced by nearby manufacturing centers. After two months of lockdown, with the recovery of manufacturing activities in Shanghai, there will be a wave of 'retaliatory cargo transportation surges,' and the transportation of goods accumulated over two months will further drive freight volumes in the shipping industry. Therefore, the shipping industry is also expected to see an increase in demand and freight rates in the near future; 2) June is traditionally a peak season for maritime shipping, with strong consumer demand for goods from Europe and the United States; and 3) The supply side remains tight, with limited port efficiency leading to signs of container congestion at several major ports including Los Angeles Port and Long Beach Port in the United States.

In the short term, freight rates are expected to continue rebounding within the next two months. With the control of the pandemic, the recovery of domestic import and export demand combined with the resumption of core routes such as trans-Pacific routes, it is expected that market freight rates will continue to recover.