There is a situation of "a shortage of available cabins" on the China-US shipping routes

Recently, there has been a tense situation of "it is difficult to get a cabin" on the China-US route. This phenomenon has attracted widespread attention from both inside and outside the shipping industry. The reasons and impacts behind it deserve in-depth analysis.

The tight shipping capacity has resulted in insufficient supply of space

According to incomplete statistics from Huatai Futures, in the 20th week (May 12-18), the total capacity from China to the West Coast and East Coast of the United States was only 160,000 TEUs, a decrease of 216,000 TEUs from the 376,000 TEUs in the 15th week (April 7-13), a decrease of nearly 60%. A large amount of capacity originally serving the China-US route was deployed to other more profitable or more urgent routes, resulting in a serious shortage of capacity on the China-US route in a short period of time, making it difficult to meet the huge demand for cargo transportation, and space has become extremely tight.

Freight rates rise in response, highlighting the market's heat

The Shanghai Export Container Freight Index (SCFI) released by the Shanghai Shipping Exchange on May 16 was 1479.39 points, up 10% week-on-week. Among them, the freight rates from China to the West Coast and East Coast of the United States reached US$3,091/FEU and US$4,069/FEU, respectively, up 31.7% and 22% from the previous period. This trend of rising freight rates directly reflects the current situation of supply and demand in the Sino-US shipping market, and also shows that under the situation of tight shipping capacity, shipping companies have appropriately increased freight rates to balance supply and demand and obtain higher economic benefits by relying on their dominant position in the market.

Popular cargo exports intensify competition for shipping space

In terms of export goods, the tire industry is particularly typical. Affected by the preliminary ruling of the anti-dumping investigation on specific tire products in the US market, my country's tire companies' exports to the US were blocked in the early stage, and a large number of orders were backlogged. With the 90-day tariff reduction agreement reached between China and the United States, US customers are eager to quickly clear these backlogs of goods and enter the US market so that they can complete sales before the preliminary anti-dumping ruling of the US Customs takes effect, thereby avoiding high tariff costs. This special demand has led to the concentrated export of goods such as tires, further exacerbating the tense competition for space on the China-US route.

Labor agreement negotiations bring potential impact

The progress of labor agreement negotiations between dock workers and employers on the west coast of the United States has also added uncertainty to the Sino-US shipping market. If the two negotiating parties cannot reach an agreement, the possible dock workers' strike will directly lead to the stagnation of port operations and the obstruction of cargo loading and unloading, which will in turn cause a series of chain reactions such as ship congestion and ship delays. This will not only further aggravate the tight space situation in the Sino-US shipping market, but may also cause disruptions in the global supply chain, making many companies that rely on Sino-US trade face risks such as delayed cargo delivery and inventory backlogs, which will have a profound impact on the global trade pattern.

Adjustment of shipping market structure has emerged

Faced with the current situation of "it's hard to get a cabin" on the China-US route and many uncertainties in the future, shipping companies have taken countermeasures. On the one hand, some shipping companies have increased the allocation of capacity on the China-US route, trying to alleviate the shortage of space by optimizing the route layout and adding overtime ships, but it will take time to restore capacity in the short term; on the other hand, in order to reduce operating costs and improve service quality, shipping companies have strengthened cooperation with upstream and downstream companies in the industrial chain such as ports and freight forwarders, and jointly sought solutions to occupy a favorable position in the fierce market competition, which has also prompted the entire shipping market to accelerate the adjustment and reshaping of the pattern.

In general, the phenomenon of "scarcity of cabins" on the China-US route is the result of the interaction of multiple factors, which has had a profound impact on the shipping market, trading companies and even the global industrial chain. In the future, with the active response of relevant parties and the self-regulation of market mechanisms, this tense situation is expected to gradually ease, but the volatility and changes in the shipping market will continue. All relevant industries need to pay close attention and adjust their development strategies in a timely manner to cope with new situations and challenges that may arise.