CMA CGM’s Big Ship Caught Fire, Adding Another Fuel To Rising Freight Rates!

CMA CGM’s big ship caught fire, adding another fuel to rising freight rates!

French CMA CGM issued an announcement on Monday saying,

A large container ship chartered by the company with a capacity of 8,814 TEU and named "NORTHERN JUVENILE" broke out in a fire shortly after leaving the Port of Singapore!

The ship is deployed on the Asia-West Africa ASAFGR route, calling at the four major domestic ports of Qingdao, Shanghai, Ningbo and Guangzhou Nansha.

The ending of the story will remain the same forever, and it will definitely still be general average.

Gentlemen, promise me, is it okay to buy cargo insurance? ?

Buy peace of mind, buy peace of mind, buy stable happiness.

The increase announced by the shipping company in June has basically been implemented, and the price of most large containers on the market is 6,000+.

In this case, the second round of announcement of increases seems natural.

In terms of spot prices, Maersk has launched wk24 Shanghai-Antwerp e-commerce prices. The current trial quotation has risen from 5440/6800 to 5485/6882.

Although the price is significantly higher than the market average, there is still a demand for bookings that are willing to accept high prices despite the tight overall spot space.

In the tide of price increases, all parties are in different situations.

As early as the end of February, Evergreen Shipping had a keen insight into the "turnaround" that the tense situation in the Red Sea would bring to the shipping industry.

The tension in this situation is undoubtedly a "spring breeze" for the shipping industry, which has been experiencing continuous decline in freight rates before, and quickly promotes the increase in freight rates.

Unlike the dismal 2023, shipping companies' results in the first quarter of 2024 have been excellent.

As a global leader in container manufacturing, CIMC Group has achieved remarkable results in the first quarter of this year.

Its standard dry cargo container sales surged by 499% year-on-year, and it optimistically predicts that this year's container manufacturing volume will exceed the 3 million TEU milestone.

At the same time, COSCO SHIPPING, which has container manufacturing as its core business, also performed strongly, with revenue in the first quarter increasing by 39.11% year-on-year.

COSCO Shipping Development said that due to the positive impact of various factors such as the Red Sea situation, mainstream customers such as shipping companies have significantly increased their willingness to purchase containers, and market demand has gradually picked up.

Based on this, the company predicts that the container market will enter a stable recovery channel in 2024, and the overall situation will show a more optimistic trend than in 2023.

Then there are small and medium-sized freight forwarders, bitter haha.

"There are too many orders, and there are a lot of orders, but there are no positions."

"The market price changes every day."

Although many shipping giants predict that as the delivery speed of new ships increases, there will be a general surplus of global shipping capacity in the second half of the year, indicating downward pressure on freight rates.

However, industry experts generally hold different views. They believe that there is still room for ocean freight prices to rise in the next three months.

As a traditional peak season, the third quarter is expected to continue its strong momentum. At the same time, as the shortage of shipping spaces and containers intensifies, terminals may face greater congestion challenges.