The four major international shipping channels are under pressure simultaneously, and shipping costs continue to rise

Recently, multiple authoritative media outlets have comprehensively reviewed the current situation of global shipping. The four core shipping channels of the Strait of Hormuz, the Red Sea Mandeb Strait, the Black Sea, and the Panama Canal have simultaneously encountered multiple problems such as geopolitical conflicts, extreme weather, and channel safety disturbances. A rare joint vibration of shipping risks has been formed for many years. More than 80% of global international trade relies on sea freight, which controls key links in energy transportation, Asia Europe trade, grain exports, and cross-border transportation in the Americas. Multiple unstable factors are compounded, directly pushing up fuel surcharges, waterway war insurance, and long-distance detour costs. Foreign trade enterprises are also facing dual challenges of logistics price increases and delivery delays, highlighting weak links in the cross-border supply chain.

The two energy shipping routes in the Middle East have become the core of this round of market volatility. The Strait of Hormuz is responsible for 25% of global shipping of crude oil and 20% of liquefied natural gas, and is also one of the core channels for domestic energy imports. After the continued tension in the regional situation, the traffic volume of commercial ships in the strait has significantly reduced, and oil tankers and liquefied gas vessels have chosen to detour long distances on a large scale, driving fluctuations in international crude oil prices and a significant year-on-year increase in ship fuel costs. The safety hazards of the Red Sea route have not been eliminated either. Commercial ships passing through the Mandeb Strait are frequently attacked, and major shipping companies have suspended direct routes from the Red Sea to the Suez Canal. The vast majority of Asia Europe container ships can only detour around the Cape of Good Hope in Africa.

Data shows that one-way detours add thousands of nautical miles, resulting in an overall travel time extension of 10 to 14 days, a significant decrease in ship turnover efficiency, and a passive reduction in effective market capacity. Shipping companies continue to add various additional costs to cover fuel, labor, and insurance expenses, resulting in a significant increase in container logistics costs for the Middle East and Asia Europe routes. The insurance market has tightened synchronously, and the premium for high-risk waterway ship war insurance has significantly increased. Many insurance institutions have tightened their underwriting conditions, further increasing the comprehensive cost of foreign trade enterprises' shipments.

The volatility of the Black Sea waterway continues to impact the global food supply chain. The normalization of maritime friction has led to restrictions on port operations along the Black Sea, and the scale of grain exports continues to shrink. Russia and Ukraine are important global grain exporting countries. After the waterway was blocked, transportation channels for grain imports in North Africa, Central Asia and other regions narrowed, and land transportation could not completely replace sea transportation. The cost of global grain trade increased, and the transportation of fertilizers and chemical raw materials was blocked, indirectly affecting the stability of raw material supply for manufacturing in various countries.

The Panama Canal in the American direction is constrained by arid climate, resulting in a continuous decline in navigation efficiency. Due to the impact of El Ni ñ o climate, the water level of the canal's water storage lakes has been low for a long time. The canal management has lowered the daily navigation quota for ships, and advance bidding and reservation are required for ship passage. Freight ships heading to the East Coast of the United States either reduce their load and draft standards, or pay high bidding fees to compete for navigation time slots. Delays on the Asia to East Coast route have become normalized, with cargo accumulation at transit ports and increasing additional expenses for port detention and storage.

The simultaneous pressure on the four major shipping routes has brought about a chain of negative impacts: global freight rates continue to fluctuate, shipping schedule stability has significantly decreased, direct routes frequently adjust transit and detour plans, and delivery delays have become the norm. Foreign trade factories that rely solely on a single shipping channel are prone to economic losses such as cargo detention, damage, and general average. Relevant international economic and trade organizations have warned that there is still a possibility of an increase in shipping insurance and waterway surcharges in the third quarter, and the profit margins of small and medium-sized foreign trade enterprises will continue to be under pressure.

Faced with the complex and ever-changing global shipping environment, foreign trade enterprises urgently need to establish diversified logistics planning ideas to avoid the concentration risk brought by a single route. Guangzhou Xingmeilun International Freight deeply cultivates the two core ports of Guangzhou and Shenzhen, relying on a mature global logistics network to provide one-stop cross-border logistics services for various foreign trade customers.

We have established a 24/7 waterway information monitoring system, with dedicated personnel to follow up on navigation safety, weather, and policy changes in major sea areas around the world in real time. We synchronize relevant information on waterway detours, suspensions, and price adjustments in a timely manner, and assist customers in flexibly adjusting their shipping plans; Diversified transportation solutions can be provided for different destinations, and the Asia Europe route can be flexibly combined with ocean shipping and China Europe intermodal transportation. High efficiency goods can switch to air transportation channels to diversify the risks of a single waterway; Full process compliant freight insurance consultation, covering various types of loss protection such as delay, cargo damage, maritime accidents, etc; We provide professional maritime declaration, compliant packaging, and full process tracking services for dangerous goods in categories 2 to 9, strictly matching the transportation regulations of each waterway.

The international maritime environment is constantly changing, and cost and safety are the two core factors that cannot be ignored in foreign trade going global. At present, various risks in key global shipping routes have not completely dissipated. When planning shipping plans, enterprises should not only focus on the high and low freight rates, but also comprehensively consider the stability of the routes and potential risks. Our company provides one-stop full chain logistics services, integrating sea, air, and multimodal transportation resources, balancing transportation efficiency, cost, and cargo safety, to build stable and reliable cross-border supply chain solutions for export enterprises, and calmly cope with various uncertainties in the global shipping market.

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