Currently, trains from China to Europe run smoothly, with efficient operations at all border terminals. The availability of slots is sufficient and the rates remain relatively stable. The average transit time from main stations in China to Małaszewicze in Poland is 13 days, and to Duisburg it varies from 18 to 21 days. The maximum number of containers carried by the train is currently 55, and their maximum weight is 3000 tons.
Sea Freight:
After a prolonged slowdown, the container shipping market is expected to rebound as the traditional shipping season approaches. According to Drewra's assessment on July 6, rates from Shanghai to Rotterdam increased by 2%, from USD 1313 to USD 1345 per FEU. However, Drewry's rating is generally considered too high. Current average freight rates are $750/FEU and $1200/FEU from China to Europe.
In an attempt to reverse the continuing decline in freight rates, CMA CGM announced on July 4 that it would significantly increase the FAK rate on the Asia-North Europe route from August 1. The new freight rates will be $1075/20 GP, $1950/40GP/40HC/40 Reefer from Asia to Northern Europe.
Earlier, Maersk tried to raise FAK rates on July 31 this year. up to USD 1025 per TEU and USD 1900 per FEU from major Asian ports to Rotterdam, Felixstowe and Gdansk. However, large shipping companies do not believe that these carriers will be able to achieve their goals in terms of increasing freight rates. The director of one Asian carrier stated that it is very difficult and there is even a possibility that the rates may fall during the period of the agreement. Ultimately, freight rates are determined by market supply and demand.
July 4th COSCO announced that, according to the company's preliminary estimates, it achieved an EBIT of approximately NT$2023 billion in the first half of 24,690, down approximately 74,10% year-on-year compared to the same period last year. Net profit was approximately NT$19,660 billion, down approximately 74,40% year-on-year.
On the other hand, Evergreen Marine reported operating revenues of NT$134,21 billion (approximately US$4,39 billion) in the first half of 2023, down 61,2% from the same period last year.
As container ship deliveries are expected to reach record levels this year and in 2024, the container shipping market will continue to experience significant downward pressure. This pressure will be partially offset by shipping companies' efforts to slow shipping and suspend operations, further intensifying the price war.
Older and unsustainable cargo ships are being dismantled. Data from the Asian consultancy Linerlytica show that 13 ships (18 TEU) have been dismantled by the end of February this year, compared to just 553 ships (7 TEU) in the entirety of last year. However, this is not enough to restore the balance of supply and demand in the market.
In China, there are logistics companies that offer freight from Nansha, China, to North Maynila, Philippines for -390/-790 USD for a 40-foot container, which means that carriers pay customers if they choose their shipping services. Industry insiders believe that market risk is on the rise. Some companies may resort to illegal operations to survive, while others may exit the market suddenly, causing losses for shippers as well.
Railway transport:
Currently, trains from China to Europe run smoothly, with efficient operations at all border terminals. The availability of slots is sufficient and the rates remain relatively stable. The average transit time from main stations in China to Małaszewicze in Poland is 13 days, and to Duisburg it varies from 18 to 21 days.
However, there are no slots for shipments from Europe to China in July due to the limited number of trains. Only 4 trains will leave Tilburg in July this year, 2 trains will run from Duisburg to Xi'an a week and 1 train each from Hamburg and Małaszewicz to Nanjing, with 1-2 trains to Wuhan a week.
The volume of cargo transported from China to Central Asia decreased, resulting in an oversupply of slots. As a result, special rates lower than the market average are often offered.
On the morning of June 27, the first return trains from Duisburg to Xi'an set off on 42 December 11,5, following the established timetable along the entire route. The train was carrying XNUMX containers and will pass through Poland, Belarus, Russia and Kazakhstan before entering China via Alashankou port. The estimated transit time is XNUMX days.
According to data from China Railway Group, a total of 8 trains were operated from January to June this year, carrying 641 TEU of goods, an increase of 936% and 000% respectively. Of these, 16 trains left China, carrying 30 TEUs of goods, an increase of 4% and 620% year-on-year respectively. In turn, 499 trains returned to China from other countries, carrying 000 TEU of goods, an increase of 16% and 29% year-on-year respectively. Currently, Chinese trains have reached 4 cities in 021 European countries.
The maximum number of containers carried by the train is currently 55, and their maximum weight is 3000 tons. These figures represent a 34% and 20% increase respectively compared to the early stages of rail transport. The ratio of trains returning to China to trains leaving China is over 87%. In addition, there are plans to increase cold chain transport, provide more personalized services and expand the range of cargo categories on China-Europe trains.
Industry insiders note that many thriving rail freight companies are located in regions with high rail demand.
Road transport:
The volume of road cargo from China to Europe remains low, but companies with customer resources still have sufficient business opportunities. The most difficult part of the whole route was crossing the border between China and Kazakhstan, but now the border crossing time can be reduced to 12-24 hours, which is the shortest time in 3 years.
The border crossing time at EU borders has also been reduced to 1-2 days. Some shippers have announced transit times for all full truck loads to the EU and UK of 10-18 days in May and June this year. If any customer can prove that their cargo arrived later than 18 days, they can receive monetary compensation of 20 yen (about US$000).
Due to the volatile exchange rate, many companies have started to offer rates in Chinese RMB. Here are some sample rates: ¥115,000 (approximately $15,925) for FTL from China to Belgium, ¥118,000 ($16,341) for FTL to Hungary and Germany, and ¥133,000 ($18,418) for FTL to the UK.
Additionally, if the cargo volume is large, the freight forwarder can offer a more attractive road freight rate of USD 12 per FTL from Shenzhen, China to Poland and USD 000 per FTL from Guangzhou and Shenzhen to the Netherlands.
news :
– Chinese air conditioners are selling well
With persistent heatwaves in many areas, sales of air conditioners in China have seen a significant increase. Industry data shows that in the first half of 2023, sales of air conditioning products increased by 20,9% compared to the previous year, making it the fastest growing category among major appliances. Currently, air conditioning manufacturers are increasing their production capacity and stock levels. For July this year production of a total of 14,83 million units of air conditioning is planned, which means an increase of 22,6% year on year.
– Trade between China and Russia
At present, China's exports to Russia account for only about 3% of its total foreign trade, which is even less than China's exports to Vietnam. Therefore, China attaches more importance to the European market than to the Russian one. Although there are now more trains going to Russia than to Europe, Chinese trains are still referred to as "China-Europe trains" and not "China-Russia trains".
– China has lifted the ban on beef imports from Belgium and Poland
In June this year China has announced the lifting of the ban on boneless beef imports from Belgium and Poland. This decision opens the door for Polish and Belgian beef to re-enter the Chinese market after a 22-year break. The ban was initially introduced by China in March 2001 after mad cow disease was detected in parts of Europe. Lifting this ban creates great opportunities for Poland and Belgium.
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