In the past week, the export container shipping market has shown signs of improvement, with transportation demand rebounding, driving up freight rates on long-haul routes, particularly those serving Europe and the United States.

         Freight rates on Europe-bound routes have staged a strong comeback, surging by 31.4% in a single week, while rates on routes to the US West Coast rose by 10.1% in the same period, reaching a total increase of 38% throughout July. This surge in freight rates is considered an early indication of the shipping companies' efforts to implement price increases on Europe and US routes in August.

          Industry sources reveal that with limited growth in cargo volume between Europe and the US and continuous investment in new shipping capacity, shipping companies are already close to the limit of capacity reduction through void sailings. Therefore, whether the momentum of rate increases can be maintained in the first week of August will be a critical observation point.

           Since July, the volume of goods from the United States has been gradually increasing, and there has been a slight improvement in European cargo volume. However, excess shipping capacity remains difficult to absorb, leading to an imbalance of supply and demand. Shipping companies have been stabilizing freight rates through capacity reduction and void sailings, but reports indicate that the current rate of capacity reduction is reaching a critical point. The debate about whether the shipping market is entering a peak season has been ongoing, but most shipping companies remain cautious about the market outlook.

           Currently, the global shipping market is still facing a large supply-demand gap and significant imbalances. On the supply side, there is an oversupply of shipping capacity, making it challenging for freight rates to recover in the short term. On the demand side, the peak season for shipping may be delayed this year, and it is expected that freight rates may increase on several routes towards the end of the third quarter or the beginning of the fourth quarter.