Sudden double price increase! The shipping costs of major European and American routes are synchronously increasing

Entering the traditional shipping peak season in July, the two core routes in Europe and the United States are facing the pressure of rising logistics costs. Foreign trade enterprises, especially photovoltaic, energy storage, vehicle and other new energy exporters, need to adjust the shipping pace in advance and do a good job in overall planning of logistics costs. The Suez Canal Authority has issued an official notice to increase temporary tolls for various types of ships starting from July 15th. This increase is in addition to the basic tolls, with the highest increase for fully loaded crude oil and refined oil tankers, increasing the surcharge ratio from 25% to 37%. The fees for unloaded oil tankers and dry bulk carriers have also been significantly increased. Although the basic surcharge for container ships remains unchanged, the overall expenditure has significantly increased after adding the Red Sea route war surcharge. Ships that circumnavigate the Cape of Good Hope for a long time also have to bear the additional costs of fuel, labor, and ship leasing caused by a seven to fourteen day voyage, as well as the exclusive high-risk surcharges for nine types of dangerous goods such as photovoltaic energy storage. The comprehensive logistics cost of factories that choose to ship on the European route will increase by 12% to 20%, and the profit margin of low gross profit orders will continue to be compressed. In late July, cabin resources will also be tightened with the price adjustment policy, which may lead to container bursting and container dumping. It is recommended that customers who have a demand for European shipping arrange for their goods to be cleared and shipped before July 15th. Large orders can be arranged in batches and booked in advance. At the same time, the comprehensive cost of multiple routes such as Suez direct shipping, Cape of Good Hope detour, and Middle East transit should be compared to select the best booking. MSDS, dangerous goods certificate, and UN38.3 full set of documents should be prepared before shipment to reduce additional costs caused by incomplete information leading to ship delays. Customers who have long-term cooperation with shipping companies can also communicate in advance about additional fee sharing terms to stabilize logistics budgets.

The market situation in the US is also not optimistic. Major shipping companies have implemented the GRI peak season freight rate increase plan in July, and multiple external factors have jointly pushed up market freight rates. Affected by the situation in the Red Sea, a large number of ships have been forced to divert and detour, resulting in a 15% to 20% reduction in global container capacity. In addition, the Panama Canal's dry season has reduced the number of daily vessels, resulting in a 12 day extension of the overall shipping schedule for the US East route. The 40HQ US West route freight rate has increased by $3375, and the US East route freight rate has increased by $3000. Currently, the spot freight rate from South China to the US West 40HQ has approached $7600, and the US East freight rate has exceeded $7900, with an overall increase of over 110% compared to the end of April. The market quotation fluctuates frequently, and the release cycle of preferential cabin seats is short, with a validity period of only one to three days. The difficulty of price locking has greatly increased. At the same time, the speed of empty container return in the US West ports is slow, and there is a shortage of high containers at major domestic shipping ports, which will result in additional container shortage surcharges. Extending the shipping schedule means that factories need to prepare goods 15 to 20 days in advance, which increases the cost of storage capital occupation. Small and medium-sized shipping enterprises lack the advantage of long-term contract bargaining and can only undertake high priced spot cargo space. Once there is a shortage of containers or delayed departure of ships, it is also easy to cause overseas order delays and default losses. Customers who plan to ship in July and August are advised to lock in future cabin space in advance at this stage, flexibly match US West and US East routes based on order delivery time, and integrate multiple batches of goods for LCL booking to enhance bargaining power. Enterprises with long-term stable shipping needs can layout overseas warehouses in North America in advance to divert and stock up, alleviating the problem of tight cabin space during peak season for direct routes.

At present, both the European and American routes are experiencing a cycle of rising costs. When formulating shipping plans, companies can combine the staggered pricing schedules of the two routes to arrange shipments and minimize additional logistics expenses. For dangerous goods such as energy storage, lithium batteries, photovoltaic modules, etc., it is recommended to complete the full set of testing and pre examination of declaration materials in advance to avoid delays in port inspections and shipping schedules.

In the face of complex international situations, appropriate logistics solutions are particularly important. Our company has long been deeply involved in the logistics of new energy exports on the Asia Europe and US routes. Relying on abundant route resources, we customize transportation solutions that match customer cargo types, delivery times, and budgets. At the same time, we provide one-stop logistics services such as maritime declaration and dangerous goods monitoring to help enterprises cope with various industry problems such as rising freight rates and route delays. If you have shipping plans for European and American routes, please feel free to contact us for real-time freight rates and exclusive logistics planning solutions.

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