The trend of high shipping prices may continue

Since the second quarter of last year, with the recovery of global trade, international shipping prices continue to climb, constantly refresh the “record.”  In the first half of 2021, shipping prices continued to “rise”, and professional agencies predict that the trend will continue in the third quarter.  

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China’s shipping industry is in the best recovery period in history, and the country’s shipping market is expected to continue to pick up in the third quarter of 2021, according to a new report released by the Shanghai International Shipping Research Center on July 5.  At the same time of capacity increase, freight rates will also usher in a new round of rising prices.  

 

According to Zhou Dequan, director of Shipping Development Research Institute of Shanghai International Shipping Research Center, in the third quarter of 2021, the climate index and confidence index of shipping related enterprises will still remain above the scenery line. Among them, China’s shipping climate index is expected to be 121.00 points, down 5.40 points compared with the second quarter, maintaining in the relatively prosperous range.  China’s shipping confidence index is expected to be 162.73 points, down 1.46 points compared with the second quarter, still maintaining in a strong climate range.  Chinese shipping industry thaw trend is visible from this spot.  

 

In the second quarter of 2021, China’s shipping climate index reached 126.39 points, a new record high since the release of the index.  China’s shipping confidence index was 164.20 points, basically flat with the first quarter, maintaining in a strong climate range.  

 

Shipping enterprises continue to increase the delivery of shipping capacity  

 

In the second quarter of 2021, the shipping capacity of shipping enterprises continued to increase, the utilization rate of shipping space continued to rise, and the freight income increased significantly.  In spite of the significant increase in operating costs, the company still maintains a strong profit;  Loan liabilities continue to reduce, labor demand increased substantially, working capital is very comfortable, enterprise financing is relatively easy, shipowners’ willingness to invest in transport capacity continues to strengthen, enterprise risk resistance ability rises steadily.  

 

The report shows that in the second quarter, the climate index of shipping enterprises is 132.70 points, 12.85 points higher than that of the first quarter, entering a relatively climate range.  The confidence index of shipping enterprises was 168.66 points, down 4.96 points compared with the first quarter, but still maintained in the strong climate range, indicating that entrepreneurs have sufficient confidence and are optimistic about the future prospects.  

 

Container transport companies in the second quarter made a big profit, entrepreneurs are full of confidence in the future business, optimistic about the market.  In the third quarter, the climate index of container transport enterprises is expected to be 136.09 points, and the confidence index is expected to be 168.31 points, both entering the relatively climate range.  

 

After making profits from the second half of 2020 to date, shipping companies said in the third quarter that they will continue to increase the launch of ship capacity.  According to the survey conducted by China Shipping Climate Index Compilation Office of Shanghai International Shipping Research Center on the planned new shipping capacity of shipping enterprises in the next quarter, 18.63% of the enterprises said that they expected the new shipping capacity to increase by more than 20% compared with the second quarter.  25.49% of the enterprises said they expected the new capacity to increase by 10%~20% compared with the second quarter;  36.27% of the enterprises said they expected the new capacity to be basically the same as the second quarter;  17.65% of the enterprises said they expected the new capacity to drop by 10% to 20% compared with the second quarter.  1.96 percent of enterprises said they expected new capacity to drop by more than 20 percent from the second quarter. 

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Post time: Jul-10-2021