On July 1st, MSC Meidong increased its price by $2,000!

The recent development of container shipping market shows that although the global spot freight rate is still rising, the growth rate has slowed down compared with May and early June. However, some shipping companies, such as mediterranean shipping company (MSC) and Maersk Shipping, recently announced plans to adjust freight rates for European and American routes.Specifically, MSC announced that from July 1st, the freight rate of European routes (European routes) will be raised to 9800 USD at the highest, and Maersk Shipping also informed customers that the freight rate of each container of European routes will be raised to 2000 USD at the highest to 9400 USD. MSC has also promoted the substantial adjustment of the freight rate on the US-East route ahead of schedule, and plans to increase the freight rate per container by 2,000 US dollars from July 1. If successful, the freight rate will exceed 10,000 US dollars, reaching 10,400 US dollars.

It is worth noting that the freight rate adjustment plan of Maersk's European route will be implemented on July 1, but for the US-East route, most shipping companies originally planned to raise it on July 15. However, as MSC pushed for a substantial price increase half a month ahead of schedule, and considering that HMM sent three overtime boats on the eastern route of the United States, whether mediterranean shipping company's price increase plan can be successfully realized needs further observation.Market analysts pointed out that the labor agreement between workers and employers in the East Coast Wharf of the United States will expire on September 30. At present, the trade union has stopped the negotiation of new contracts on the grounds that the use of automation facilities in Maersk wharf affects the workers' right to work, which makes the possibility of strike higher. This led to the owner being forced to rush the shipment in advance, which increased the shipping demand. At the same time, although the Panama Canal has increased the traffic volume, it has taken measures to limit the weight, which also provides a reason for MSC to raise the freight rate substantially.

In contrast, there are more overtime ships and newly opened routes on the US-West route, and the supply of shipping space is relatively sufficient. It is expected that the freight rate per container will increase by 1,000 US dollars on July 1. However, the shipping space on the US-East route is relatively tight, and the possibility that the freight rate of MSC US-East route will increase by 2,000 US dollars is considered possible by the market, but how long it will last remains to be seen, because new shipbuilding and overtime ships are continuously put into European and American routes.Peter Sand, chief analyst of Xeneta, said that although the growth of spot freight rate has slowed down, which is a positive signal for shippers, the whole shipping market still faces enormous challenges, and this situation may continue. Compared with the middle of December last year, the average spot freight rate from the Far East to the west coast of the United States and Northern Europe increased by 276% and 316% respectively, which is a huge economic pressure for shippers.