Sea freight is difficult to rise in
Source:   Publish Time: 2012-05-23 23:30   783 Views   Size:  16px  14px  12px
Sea freight is difficult to rise in price

  In late April, the symbol of the international dry bulk transport boom extent of Baltic Dry Index (BDI) to re-back up to above 1,000 points, very depressed shipping market to regain some confidence. Suffered huge loss of container shipping company plans to re-price increases in May, market participants believe that there is no small difficulty.

In early February of this year, the BDI index had slipped to 647 points, innovation lowest level since the century. Thereafter began to rise slowly, and again in late April to stand above 1,000 points.

BDI bottoming out the main reasons for the increase in demand. Coincided with the peak of the South American grain exports, resulting in tight spot capacity of the Atlantic region.In addition, the rise in domestic steel prices and iron ore inventory reduced, making some steel mills in April a new round of replenishment behavior also contributed to the rebound of the factors of freight. Steel spot trading platform "West of the Shinkansen high-level Fellow Qiuyue Cheng pointed out.

BDI index to rise, so little to restore confidence in the shipping market. Following the two price increases in March and April, part of the container shipping company plans to raise prices again in May. For example, COSCO Container Lines overweight cargo for the Far East to South Africa from May 1 impose a surcharge of up to $ 400 / TEU. Orient Overseas announced that from May 15 raised $ 200 / TEU container freight to Europe to Asia.

Shanghai Shipping Exchange, said the current market prices to the plan in May amplitude and continuity on the sidelines for two reasons: first, 34 two months of two consecutive full capacity prices has been the European freight routes jumping relatively high ;, according to Clarkson, May, 20 container ships into the water, large-scale new capacity to suppress the upward momentum of the freight; shipping company recently to secure freight, but their pricing has simply consider the market supply and demand, but more consideration to their own profit, the owner can accept difficult sentence.

It is worth noting that, because of worry about price increases in May, and recently China's container transportation ushered in a wave of shipping a small peak, part of the regional road sections leading to the port and even a traffic jam phenomenon.

Continuous price increases around Shanghai exported to Europe's container freight from the low $ 500 / TEU rose sharply to above $ 1700 / TEUs, while the shipping company the breakeven point is about $ 1,300 / TEU. This means that the shipping company performance exists the possibility of substantial improvement.

Capital market there is certainly expected for the improvement of the shipping plate, including China Ocean shipping stocks, including the CSCL April rose more than 7 percent, the gains were more than the same period.

Export Dept. Director
MSN  Ms.Kisn