Recently, market rumors have spread, saying that several routes, such as the US line, the Middle East line, the Southeast Asian line, etc., have seen a explosion phenomenon. In this regard, many freight companies have confirmed that this has indeed occurred, and this has also led to the price of these routes start to rebound.

Why does the “explosion” phenomenon occur?

Several cargo analysts say that although several routes have exploded, the main reason is that the ferry company has reduced the ship’s capacity. It is the ferry company to push up the next year’s long co-operation price, intentionally reduce the capacity at the end of the year, thereby stimulating the price of shipping. But some cargo people say that this time the explosion of the cabin is not really a sudden increase in cargo, but only the strategic operation of the ferry company.

Especially on the U.S. line, in addition to the companys strategy, there is also an increase in demand due to the U.S. black fifth and Christmas shopping season. The goods of these two shopping seasons of the past year, usually in the 7th to 9th, have begun a lot of shipments, but this year may be delayed due to a number of factors.

How does the price change?

According to Ningbo Airways data, last week’s shipping price index showed shipping price index increases for 16 routes, with North American routes increasing by 3.8 percent, while Western routes increased by 2.6 percent. Middle Eastern and Red Sea routes grew by 22.3 percent and 25.5 percent, respectively.

How do companies view this trend?

For the increase in shipping prices, ferry companies and freight companies are undoubtedly beneficial.The MaritimePrice increases, the revenue of the ferry company will increase, and the freight company will also have room to earn the shipping price difference.

With the arrival of the Christmas shopping season, the main ferry companies will show a trend of rising costs if they rationally invest their capacity, while the Middle Sea Control also said that if the prices of the main routes can be restored and the capacity utilization rate remains high, the companys routes business revenue will be further secured.

But it is worth noting that despite the rising prices on most routes, the prices on the European routes remain steady, and the industry is cautious about the price of US routes next year because there will be a lot of new deliveries next year.