Recently, shipping costs have continued to rise due to the Red Sea crisis, and the price increase has not stopped. Due to inflation in Europe and the United States, ports around the world have set off a wave of strikes. Shipping companies will naturally not miss this opportunity and continue to raise prices.
The imbalance between supply and demand in the shipping market has intensified, and the shortage of containers and port congestion have become more and more serious. The freight index continues to rise. The latest Shanghai Export Container Freight Index (SCFI) announced on the 7th rose by 4.6% to 3184.87 points, achieving a nine-week upward trend, but the increase has slowed down compared with the past four weeks. This week, the freight rates of the four major routes have all shown an upward trend.
The freight rate per TEU on the European route reached US$3,949, an increase of US$209 per week, an increase of 5.58%.
The freight rate per TEU on the Mediterranean route reached US$4,784, an increase of US$64, an increase of 1.35%.
The freight rate per FEU on the West Coast route was US$6,209, a slight increase of US$41, an increase of 0.66%.
The rate increase on the US East Coast route was relatively large, with the rate per FEU increasing by $241 to $7,447, an increase of 3.34%.
It is worth noting that the Southeast Asia (Singapore) route, which has attracted much attention due to port congestion, has increased by as much as 14.63% in the week.
Industry analysts believe that the growth in US line cargo volume is mainly due to two factors: one is the demand for replenishing inventory, and the other is the psychological factor of early shipment due to delayed shipping schedules. The latter is manifested in repeated bookings or overbookings, which exacerbates the shortage of shipping capacity and pushes up freight rates. Some shipping companies have observed that due to high freight rates, some low-priced goods have reduced shipments or delayed delivery time.
Antwerp Port Restrictions
On the evening of June 6, local time, a fuel leak occurred at the Antwerp-Bruges Port in Belgium, the second largest container port in Europe, resulting in a limited navigation ban on Deurganck Dock, the largest single container terminal in Europe.
The leak affected the port's Deurganck Dock, container operations area and Kieldrecht Lock, as well as about 20 ships, including inland and ocean-going vessels.
Strike at all French ports
All major ports in France, especially the container hubs of Le Havre and Marseille-Fos, are facing the threat of a month-long strike in the near future, which is expected to cause serious operational chaos and disruption.
The strike was planned by the union representing dockworkers and other port workers to hold several one-day strikes and multiple four-hour stoppages in June to protest the government's pension reform to raise the statutory retirement age.
If the union fails to get a satisfactory response from the government, the strike action may be extended to July.
Strike at the Port of Hamburg
According to foreign media reports, Hamburg container terminal workers launched a warning strike on June 7, local time, resulting in the suspension of terminal operations.
Verdi, the union representing workers at the Port of Hamburg, said that the second round of negotiations with German seaport operators on raising wages failed to produce results on Thursday. "The offer made by the employer is completely insufficient," said a Verdi negotiator.
In order to exert pressure for better compensation, the union called on the dock workers to call for a strike at the Port of Hamburg. Work stopped from 5:30 a.m. on the 7th until late at night.
It is reported that the third round of negotiations will be held in Hamburg on June 17 and 18. Verdi requires retroactive wage increases and adjustments to shift bonuses to help low-wage groups cope with inflation.
Potential strike in Canada
A potential strike at the Canadian border may pose a threat to the logistics supply chain. The strike plan originally scheduled for Friday by Canadian border workers was suspended to allow more mediation time for further negotiations with the federal government.
