China and its reduction in space and increase in rates, learn why this situation is being experienced in the Asian country's export market.

The ocean market info as below:

1. Due to many large Chinese factories are exporting large quantities of cargo, such as Hisense, the space is very tight now.

2. Many carriers informed their vessels already full booking in the first half of May, it's crazy!

3. As the market info from the carriers, the tight situation of space will continue until June.

4. At present, it's more difficult for heavy cargo, many carriers don't want to load it, even add the OWS.

5. The carriers are pushing the FAK rate to go up weekly, and increasing around USD 500 to USD 1000 per week.

6. For the current ocean market, the most important thing is the available space, this situation is similar to during COVID-19. 7. Many shipping companies have occurred shortages of containers, especially from Ningbo/Qingdao.

 

The reasons for the rate continued increase as below:

1. The political factor: The competitive trade relationship between China and USA has led to changes in tariff policies and currency exchange rate of other countries.

2. The war factor: The conflict between Russia and Ukraine, the Middle East conflict, and conflicts in other regions have caused delays in shipping schedules and the containers have not been able to return to China in a timely manner.

3. The space factor: Due to many large Chinese factories are exporting large quantities of cargo, and many cargo are piled up at the terminal waiting to be on board, caused the port congestion, and space is very tight now.

4. The market factor: The SCFI index has been rising for several consecutive weeks, and the shipping lines will charge the Peak Season Surcharge, due to the traditional peak season is coming.

 

Suggestions

1. The market changes in the space are very fast now, we need to arrange the booking one month in advance, especially for the spot rate.

2. We better to arrange the booking first and then confirm the rate. Otherwise the space will be always sold out soon, because the space is very tight.

3. If the cargo is ready and need to be shipped, I suggest catching up the nearest available vessel ASAP.

4. If the client wants to find the cheapest rate or hesitate, it will easy to lose the current good option, because the rate will be higher for next vessel.