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Since the Spring Festival, under the threat of Trump's tariff stick, foreign trade exports, including textiles, have declined significantly, the amount of goods to be transported has been greatly reduced, and freight costs have also fallen for 10 consecutive years. And recently, freight finally rebounded, does it mean that the foreign trade market has a certain turnaround?
Freight volumes bottomed out and rebounded
Industry insiders pointed out that last week due to the effect of shipments at the end of the month and the end of the quarter, booking rates rebounded and freight rates basically stabilized. According to foreign media JOC reports, the long-term contract price of the United States route has been confirmed to increase this year. A number of shipping lines have signed long-term contracts with U.S. retail giants for the West American route, and compared with last year, the price has increased by 15% to 20%, and now the price of a 40-foot container is about $1,600 to $1,800. At the same time, freight forwarders have revealed that large shippers (Bcos) may have a chance to secure contracts for around $1,400 to $1,600.
The long-term contract price for the U.S. East route is about $1,000 on top of the price for the U.S. West route. The current spot price for the US-West route is about $1,600 to $1,700. This means that shipping companies are under enormous pressure to raise prices in April, and only successful price increases can support long-term contract prices.
As we move into April, there are signs that shipping lines are planning to take a more aggressive approach to support rates. Their purpose is clear: They want to defend long-term contract prices so that they are at least 15 to 20 percent higher this year than they were last year, if not more.
Is there a turning point in foreign trade?
Made in China, represented by textiles, is a part of life for many countries, although tariff fluctuations may affect foreign trade exports to a certain extent, but after all, clothing is not able to escape the just need, the basic demand is still there.
However, on the other hand, there are many similarities between the shipping industry and the polyester industry, several giants occupy most of the share of the industry, once the price has a large decline, the industry will have a certain tacit understanding to prevent these declines, such as the recent polyester industry under the pressure of high inventory ready to reduce production to insure prices, Shipping giants will take similar measures to keep rates stable. Therefore, whether the rebound of freight means that foreign trade is picking up still needs time to observe.